Scandinavian Working Papers in Economics
Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science
No 2009/5: A Survey and Analysis of Outsourcing in East China
Tijun Fan (), Leif K. Sandal (), Jiehong Kong () and Dandan Li
Additional contact information
Tijun Fan: East China University Of Science And Technology, School of Business, Postal: East China University Of Science And Technology, School of Business, Shanghai, China Meilong Road 130, 200237, China,
Leif K. Sandal: Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Finance and Management Science, Helleveien 30, N-5045 Bergen, Norway
Jiehong Kong: Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Finance and Management Science, Helleveien 30, N-5045 Bergen, Norway
Dandan Li: Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration, Postal: East China University Of Science And Technology, School of Business, Shanghai, China Meilong Road 130, 200237, China
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
JEL-codes: L20
25 pages, May 25, 2009
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