Research on Outsourcing Risk Evaluation and Control

On the basis of analyzing the outsourcing risk events, which are the loss of competitiveness, decreasing of service quality, cost of underlying transition and management, cost increasing from contract revision, lawsuits from disputes and conflicts, obstacles of communication and feedback, “lock-in” from outsourcing vendor etc., the paper has a study on quantitative evaluation to outsourcing risk by the method of risk matrix. The outsourcing risk is divided into 4 grades, they are perfect outsourcing grade, feasible outsourcing grade, considerable outsourcing grade and unsuitable outsourcing grade. Then the paper does application analysis, which confirms the risk matrix is an operable and effective method for evaluating outsourcing risk of enterprise. Finally, the paper puts forward key strategies on how to control the risks.