A Survey and Analysis of Outsourcing in East China

16 Pages Posted: 27 May 2009

See all articles by Tijun Fan

Tijun Fan

East China University of Science and Technology (ECUST)

Leif Kristoffer Sandal

Norwegian School of Economics (NHH) - Department of Business and Management Science

Jiehong Kong

Norwegian School of Economics (NHH) - Department of Finance

Dandan Li

East China University of Science and Technology (ECUST)

Date Written: May 25, 2009

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 be more extensively practiced in the future, the principal outsourcing motivations 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 α=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

Suggested Citation

Fan, Tijun and Sandal, Leif Kristoffer and Kong, Jiehong and Li, Dandan, A Survey and Analysis of Outsourcing in East China (May 25, 2009). NHH Dept. of Finance & Management Science Discussion Paper No. 2009/5, Available at SSRN: https://ssrn.com/abstract=1409674 or http://dx.doi.org/10.2139/ssrn.1409674

Tijun Fan

East China University of Science and Technology (ECUST) ( email )

Shanghai
China

Leif Kristoffer Sandal (Contact Author)

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 95 93 41 (Phone)

Jiehong Kong

Norwegian School of Economics (NHH) - Department of Finance ( email )

Helleveien 30
N-5045 Bergen
Norway

Dandan Li

East China University of Science and Technology (ECUST) ( email )

Shanghai
China

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