| dc.description.abstract | In recent years, financial industry has continuously increased its scale of information service outsourcing. In addition to the limited internal human resources, the system solutions proposed by information service providers are increasingly able to meet the financial industry’s requirements. Such a tendency of information service outsourcing in the financial industry not only reduces the cost of the companies effectively, but also meets their business development strategy, improves the system quality of their information service through the maintenance contract, and allows them to introduce new information technology more easier, thus better utilizing the resources in their operational core.
Take a Financial Holding’s investments in information service outsourcing as the target of a case study. This study describes its investment process and analyzes the factors for choosing a telecommunication company and system integrator. In order to improve the service quality of information service, an equivalent service level from the providers is demanded through the specification in the contract. Also, the case is used to illustrate the conflicts among the purchase personnel, IT department, and the competitive bidding providers when renewing the contract. The study provides suggestion on the monitoring process of general outsourcing investments and the competitive bidding and dropping factors among the contractors. The data of the case include interview data and secondary data. The case results shows that though the price will be lower after the contract renewal as expected, some difficulties exist in the renewing process, such as the standard system procedure, strategy for choosing a provider, internal and external communication, etc. All these tend to produce transaction costs during the information outsourcing investments process.
The factors that influence information service outsourcing decisions are different case from case, but this case study can still serve as a useful reference for future outsourcing activity, especially when renewing and negotiating a contract.
Keywords: Information Service Outsourcing, Transaction Cost Theory, Short Message Service
| en_US |