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    Strategic Contracting for Software Upgrade Outsourcing in Industry 4.0

    Cheng Wang1,2,*, Zhuowei Zheng1

    CMES-Computer Modeling in Engineering & Sciences, Vol.138, No.2, pp. 1563-1592, 2024, DOI:10.32604/cmes.2023.031103

    Abstract The advent of Industry 4.0 has compelled businesses to adopt digital approaches that combine software to enhance production efficiency. In this rapidly evolving market, software development is an ongoing process that must be tailored to meet the dynamic needs of enterprises. However, internal research and development can be prohibitively expensive, driving many enterprises to outsource software development and upgrades to external service providers. This paper presents a software upgrade outsourcing model for enterprises and service providers that accounts for the impact of market fluctuations on software adaptability. To mitigate the risk of adverse selection due… More >

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