【正文】 ion action. Business relationship may easily be ruined by holding inplete contracts. In order to reach a plete contract, the contracting parties must pay sufficient attention to remove any ambiguity, confusion, and unidentified and immeasurable conditions/ terms from the contract. According to Besanko et al., inplete contracting stems from the following three factors: bounded rationality, difficulties on specifying or measuring performance, and asymmetric information. Bounded rationality describes human limitation on information processing, plexity handling, and rational decisionmaking. An inplete contract stems from unexpected circumstances that may be ignored during contract negotiation. Most contracts consist of plex product requirements and performance measurements. In reality, it is difficult to specify a set of prehensive metrics for meeting each party39。s problem while choosing an agent(that is, a service provider), and working relationship building and maintenance, under the restriction of information risk factors would be produced if such agent–client relationship bees crumble. It is evident that a plete contract could eliminate the risk that caused by an inplete contract and/or possible opportunistic behavior prompted by any contracting party. Opportunistic behavior is one of the main sources that cause transactional risk. Opportunistic behavior occurs when a transactional partner observes away of saving cost or removing responsibility during contracting period, this pany may take action to pursue such opportunity. This type of opportunistic behavior could be encouraged if such contract was not pletely specified at the first place. Outsourcing risks could generate additional unexpected cost to an outsourcing project. In order to conduct a better IS outsourcing project, identifying possible risk factors and implementing matured risk management process could make information systems outsourcing more successful than ever. 3. Information system outsourcing life cycle The life cycle concept is originally used to describe a period of one generation of anism in biological system. In essence, the term of life cycle is the description of all activities that a subject is involved in a period from its birth to its end. The life cycle concept has been applied into project management area. A project life cycle, according to Schwalbe, is a collection of project phases such as concept,development, implementation, and closeout. Within the above mentioned four phases, the first two phases center on “planning”activity and the last two phases focus on “delivery the actual work” Of project management. Similarly, the concept of life cycle can be applied into information systems outsourcing analysis. Information systems outsourcing life cycle describes a sequence of activities to be performed during pany39。s cost saving through outsourcing, or economic downturn that initiates it to consider outsourcing IS projects. In addition to external environment, some internal factors may also lead to outsourcing consideration. These anizational predicaments include the need for technical skills, financial constraint, investors39。s strategic plan and objectives. Later, this firm needs to integrate outsourcing plan into corporate strategy. Many tasks need to be fulfilled during planning and strategic setting stages, including determining outsourcing goals, objectives, scope, schedule, cost, business model, and processes. A careful outsourcing planning prepares a firm for pursuing a successful outsourcing project. 3. Outsourcing vendor selection: A firm begins the vendor selection process with the creation of request for information (RFI) and request for proposal (RFP) documents. An outsourcing firm should provide sufficient information about the requirements and expectations for an outsourcing project. After receiving those proposals from vendors, this pany needs to select a prospective outsourcing vendor, based on the strategic needs and project requirements. 4. Contracting process: A contract negotiation process begins after the pany selects a probable outsourcing vendor. Contracting process is critical to the success of an outsourcing project since all the aspects of the contract should be specified and covered, including fundamental, managerial, technological, pricing, financial, and legal features. In order to avoid resulting in an inplete contract, the final contract should be reviewed by two parties39。s approval. The outsourcing client must assess the quality of product/service that provided by its client. The outsourcing client must measure his/her satisfaction level to the product/service provided by the client. A satisfied assessment and good relationship will guarantee the continuation of the next outsourcing contract. The results of the previous activity (that is, project assessment) will be the base of determining the next outsourcing contract. A firm evaluates its satisfaction level based on predetermined outsourcing goals and contracting criteria. An outsourcing pany also observes outsourcing cost and risks involved in the project. If a firm is satisfied with the current outsourcing vendor, it is likely that a renewable contract could start with the same vendor. Otherwise, a new “precontract phase” would restart to search for a new outsourcing activity will lead to a new outsourcing life cycle. shows two dotted arrowlines for these two alternatives: the dotted arrow line “renewable contract” path and the dotted arrow line . indicates “a new contract search” path. Each phase in IS outsourcing life cycle is full of needed activities and processes (see ). In order to clearly examine the dynamics of risks and outsourcing activities, the following sections provide detailed analyses. The precontract phase in IS outs