Modeling of IS outsourcing based on agent systems: an analysis of profits/prices changes in formalizing collaboration among firms

  • Authors:
  • Takuya Nakahara;Seigo Matsuno;Takao Ito;Tatsuo Asai

  • Affiliations:
  • Department of Business Administration, Ube National College of Technology, Ube, Yamaguchi, Japan;Department of Business Administration, Ube National College of Technology, Ube, Yamaguchi, Japan;Department of Business Administration, Ube National College of Technology, Ube, Yamaguchi, Japan;Management and Information Systems Science, Nagaoka University of Technology, Nagaoka, Niigata, Japan

  • Venue:
  • ICOSSSE'10 Proceedings of the 9th WSEAS international conference on System science and simulation in engineering
  • Year:
  • 2010

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Abstract

Two typical but different patterns of Information Systems (IS) outsourcing have been conventional outsourcing and quasi-outsourcing. However, the diverse variety of IS outsourcing decision whether firms are increasing, decreasing, or keeping their current IS outsourcing level is widely seen recently. Therefore, mathematical models depending on situations are needed for the analysis of collaborations and relationships among firms. In this paper, we first review relevant early studies on IS outsourcing. Then, we deal with the analysis of profits/prices changes in formalizing of collaboration among firms. We also show the condition for inducing chaotic fluctuation in pricing based on the simulation studies. Finally, implications of the study are discussed.