Collaborative and Competitive Behaviors among Multiple Contractors in IS Outsourcing

In this paper, we employ evolutionary game theory to analyze outsourcing vendors’ collaborative and competitive behavior. A game model among these contractors is given together with the payoff matrixes, and replicator dynamic equations and evolutionary stable strategies are discussed. We also introduce supervision and penalty mechanism into the game model and the analysis show that appropriate mechanism can make collaborative behaviors of concerned contractors an evolutionary stable strategy.