Analysis of government information security outsourcing based on principal—Agent theory

Based on principal — agent theory, this paper establishes the principal — agent model of government information security outsourcing that has uncertainties but can be supervised and the principal—agent model that has uncertainties but can not be supervised. It analyses the risks and benefits, the participation constraint and incentive compatibility constraint in the principal—agent process. The paying incentive mode, the cost incentive mode and the trust incentive mode are devised in this paper.