The Theoretical Research on Contracts in IT Service Industry

In the IT service industry, contracts provide effective mechanisms for managing the outsourcing relationship. Meanwhile ,the service quality is an important aspect in the IT service, but in the research of the outsourcing and in the practice, the service quality was paid little attention and uncertain. This paper construct a model based on principal-agent theory, and elicit the optimal contract, then analyze the relation between the type of the IT service and the requirement of the service quality.