Abstract: This research focuses on evaluation of information service in the process of IT investment decision-making by means of theoretical and empirical study.After investigating Chinese companies in which IT intensity is high,we analyze IT investment context and CIOs'risk attitude.Next,Based on Bayesian decision theory,a mathematical model is presented which describes how CIOs analyze and assess the value of information service provided by external IT advisers.Survey results reveal most of Chinese CIOs are risk-neutral in the process of IT investment decision-making.Then,comparing the increase in expected revenue or aversion in expected loss with the cost of information service,we reach the conclusion.This research will help CIOs make the decisions whether they need to buy the information service and whether they invest in the IT assets.In the case the theoretical model is applied to evaluation of information service in a large Chinese e-business company.We conducts interviews and analyzes the data collected in the process of IT investment decision-making.The application shows that conclusion of this paper provides industries in which IT intensity is high with useful evaluation criteria of information service in Chinese context.

Key words: CIO(Chief Information Officer), information service, risk-neutral, Bayesian decision