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| Research on Risk Factors Identification and Risk Aversion of Outsourcing at Each Stage |
| Lu Yu1,2,He Youshi1 |
| 1.School of Management, Jiangsu University, Zhenjiang 212013, China;2.School of Humanities and Social Sciences, East China Jiaotong University, Nanchang 330013,China |
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Abstract Based on decision process theory, this paper divided outsourcing into four stages: planning and selecting business, forming and signing contract, executing contract, valuating results of outsourcing, and worked out risk factors at each stage of outsourcing. In accordance with four-stage decision process, a risk aversion model at each stage was developed, which included three mechanisms: self-discipline, cooperation and evaluation. Methods, procedures, measures and countermeasures of risk aversion at four stages in the process of outsourcing were discussed. The paper also analyzed the model of response to risk at each stage of outsourcing development from three aspects: input of response to risk, control of response to risk and output of response to risk. The result provided an important complement to the risk control system of outsourcing at each stage.
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Received: 16 August 2016
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Corresponding Authors:
Lu Yu
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