The Analysis of IT Outsourcing Risk Identification on Principal-agent Theory

IT outsourcing as a strategic business innovation has been adopted by more and more enterprises. The essence of IT outsourcing service is the Principal-agent relationship between enterprise and agent. As between enterprise and agent, there is information asymmetry, information distortion, coupled with the uncertainty of the market and the macroeconomic environment, resulting in IT outsourcing companies in the implementation encounter various risks existing in the process. This paper discusses the causes of IT outsourcing risk, and analyzes the losing control risk, uncertainty risk, cost risk and flexibility risk, and base on this, combined with the comprehensive COSO risk management framework, proposes a model of IT outsourcing risk identification.