IT Outsourcing and Vendor Cost Improvement Strategies under Asymmetric Information
研究了两个IT供应商在成本信息不对称下竞争客户外包业务时，通过干中学和流程改进降低单位成本，以及客户如何根据供应商学习效率选择单源或双源采购策略。
ABSTRACT In this article, we study the scenario under which two information technology (IT) vendor firms compete for the outsourcing requirements of a client firm. The vendors' cost structures are private information. In addition, the vendors can improve their unit costs through learning‐by‐doing and by making investments in process improvement, that is, induced learning. We study the impacts of vendor‐based learning and process improvement in the asymmetric cost setting on the client firm's outsourcing strategy and the vendor firms' process improvement investments. Our analysis reveals that the client firm may adopt the single‐sourcing strategy or a combination of dual and single‐sourcing strategies depending on the learning efficiency of the vendor base. We also find that high heterogeneity in the vendor cost structure increases the first‐period outsourcing requirements of the client firm. Our findings provide interesting managerial implications for the IT outsourcing industry.