Discussion Papers, Department of Finance and Management Science, Norwegian School of Economics (NHH)
No 2009/5:
A Survey and Analysis of Outsourcing in East China
Tijun Fan ()
, Leif K. Sandal ()
, Jiehong Kong ()
and Dandan Li
Abstract: The aim of this study is to investigate whether
outsourcing activities in east china are associated with a theoretical
framework derived from the literature. By the methodology of Statistics
Package for the Social Science (SPSS), the results of survey indicate that
outsourcing will more extensively practiced in the future, the principal
outsourcing motivation are to reduce costs and focus on core businesses.
The purchasing outsourcing has the largest correlation coefficients with
short-term contract, the total outsourcing has a significant correlation
coefficient with long-term contract at the level of =0.05. The findings
indicate that high service quality and mutual trust are the main criteria
for selecting outsourcing vendors. However, it is found that outsourcing
satisfaction is generally low. The main benefits of outsourcing are to
reduce cost, concentrate on core businesses and improve the service
quality, while the main problems with outsourcing are legal disputes,
disclosure of commercial secrets and conflicts with vendors.
Keywords: Outsourcing; strategy; contract; survey; (follow links to similar papers)
JEL-Codes: L20; (follow links to similar papers)
25 pages, May 25, 2009
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