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BOCOG's outsourcing contracts: The vendor's perspective

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  • Jiang, Bin
  • Reinhardt, Gilles
  • Young, Scott T.

Abstract

To date, most research on outsourcing is modeled from the client's perspective. In this paper, we approach the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG) outsourcing contracts from the vendors' perspective. Since a vendor always has the option to accept or not accept an outsourcing contract, we use the theory of options to analyze the vendor's decision making, i.e., the trigger point, which coincides with the optimal profit level, of the vendor's decision to pursue an outsourcing contract. Numerical examples are presented to demonstrate the model and its potential benefits for vendors' decision making.

Suggested Citation

  • Jiang, Bin & Reinhardt, Gilles & Young, Scott T., 2008. "BOCOG's outsourcing contracts: The vendor's perspective," Omega, Elsevier, vol. 36(6), pages 941-949, December.
    • Handle: RePEc:eee:jomega:v:36:y:2008:i:6:p:941-949
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    References listed on IDEAS

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    Cited by:

    1. Elitzur, Ramy & Gavious, Arieh & Wensley, Anthony K.P., 2012. "Information systems outsourcing projects as a double moral hazard problem," Omega, Elsevier, vol. 40(3), pages 379-389.
    2. Soni Agrawal, 2014. "Issues of Concern and Mitigating Strategies: A Study on ITES Firms," Vision, , vol. 18(3), pages 205-216, September.
    3. Moon, Yongma & Yao, Tao & Jiang, Bin, 2011. "Outsourcing versus joint venture from vendor's perspective," International Journal of Production Economics, Elsevier, vol. 129(1), pages 23-31, January.
    4. Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    5. Jahani, Hamed & Abbasi, Babak & Alavifard, Farzad & Talluri, Srinivas, 2018. "Supply chain network redesign with demand and price uncertainty," International Journal of Production Economics, Elsevier, vol. 205(C), pages 287-312.

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