The aim of this study is to investigate whether outsourcing activities in East China are associated with a theoretical framework derived from the literature. Analysis of the survey data indicates that outsourcing will be practiced more extensively in the future; the principal outsourcing motivations are to reduce costs and to focus on core businesses. This paper also analyzes mutual influence among motivations of outsourcing and shows that the main motivations can be divided into four factors. Purchasing outsourcing has a significant correlation with short-term contracts, selective outsourcing has a correlation with medium-term contracts, and total outsourcing has a correlation with long-term contracts. The findings indicate that high service quality and mutual trust are the main criteria for selecting outsourcing vendors. However, the findings also indicate that the main problems with outsourcing are legal disputes, disclosure of commercial secrets and conflicts with vendors.
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