An analysis on the operation modes of outsourcing network in the perspective of cases

With the increasing intensify of economy globalization, companies worldwide are expanding their use of outsourcing for services and products. In fact, outsourcing does not merely rest on the relationship between outsourcer and supplier, but tends to form a huge network through the connection with the third and fourth party. The paper firstly puts forward the definition of the outsourcing network, and then, based on case analysis, the paper identified operation modes of outsourcing network as well as the relationship between them. The research evidence indicates that, when well designed and well managed, outsourcing network reduces operating cost and enhances competitive strategy.