ANALYSING COMMUNICATION SYSTEM FOR SUCCESSFUL OUTSOURCING GAME THEORY PERSPECTIVE

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ANALYSING COMMUNICATION SYSTEM FOR SUCCESSFUL
OUTSOURCING - GAME THEORY PERSPECTIVE

• A. Adnan, G. Williams, S. Arunachalam, A. Cazan
  J. Arreymbi
• School of Computing Technology
• University of East London, UK
• (A2adnan_at_uel.ac.uk)

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Applying Theory of Games to analyse
sustainability of outsourcing.
AIMS

• OBJECTIVES
• Investigate role of secure communication system
  in successful outsourcing
• Analysing affects of information loss due to
  hacking on outsourcing operations

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Communication activities during Outsourcing

• Information exchange
• Requesting orders
• Confirming order requests
• Order is despatched from the supplier
• Order is received by the company
• Delivery notes
• Despatching Invoices
• Delivery and invoice matching
• Request for money transfer
• Money transfer approval
• Money transfer confirmation

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Abbreviations

• The probability of the message i
  being infected after j security sweep
• Maximum number of message counts that
  a hacker can set for infecting the
  communication
• Maximum number of messages that can
  be transmitted in a given time
• Probability distribution chosen by
  hacker of message count i
• Probability of conducting j
  security sweep by the security system
  administrator
• Size of communication system
• Number of Hackers
• Number exclusive communication
  channel or branches

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The system security administrator assumes
probability distribution that minimises the
summation. The hackers can choose the
distribution that maximise its value. Thus the
hacker insures that the probability of infecting
messages is at least

• system security administrator can use a
  strategic distribution and ensures that the
  probability of infecting messages is never higher
  than

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The target of the hacker is to maximise and that
of system security administrator to minimise it.
If the hacker adopts a mixed strategy, the least
number of messages infected are expressed by

• Both the hacker and the system security
  administrator ensure that the result is never
  worse than the optimum.

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The probability of un-infected message
transmission

• The probability that the message will be infected
  

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The case of the simple game with matrix and
having number exclusive communication
channel or branches can be expressed as follow

• 1

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The total expected messages lost (TML) due to
hacking or infected files is the product of total
messages transmitted and

• Poisson distribution (Andrews et al. 1976),
  having probability of losses is expressed as
  follow

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The amount of business loss due to hacking is
given by, then the expected value loss is
formulated as

• The distributions function for total loss of
  business

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Let
Revenue or assets at time
Initial balance
Income incoming
Loss of income due to loss of communication due
to hacking
Where the probability that
is true, then the outsourcing operations
is sustainable otherwise may suffer losses.
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Conclusion

• The paper has presented using the application of
  game theory to assess the probability of data
  loss in the communication system due to hacking
  and infection. By applying games theory, the
  outcome of hacking and expected loss is
  interpreted in more than one way and concludes
  the sustainability or failure of the outsourcing
  operations. It has been shown that the original
  simple concepts can be successively refined step
  by step until a reasonable working model is
  obtained.

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