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Fuzzy approach to outsourcing of information technology services

Published: 13 March 2005 Publication History

Abstract

The paper proposes a new approach for tackling the uncertainty and imprecision in outsourcing and evaluating Information Technology services. Identifying suitable outsourcing options, evaluating them and choosing the best one are regarded as multiple decision criteria decision making problems under uncertainty, where the imprecise decision-maker's judgments are represented as fuzzy numbers. A fuzzy modification of the Analytic Hierarchy Process is applied as an evaluation technique. Unlike the known fuzzy prioritization techniques, the proposed method derives crisp weights from consistent and inconsistent fuzzy comparison matrices, which eliminates the need of additional aggregation and ranking procedures. A detailed numerical example, illustrating the application of our approach to outsourcing evaluation and selection is given.

References

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Bouyssou, D. (1989) Modelling inaccurate determination, uncertainty, and imprecision using multiple criteria. In A. Lockett and G. Islei, editors, Improving Decision Making in Organizations, 335, 78--87., Springer-Verlag, Berlin.
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Gupta, U. G. and Gupta, A. (1992) Outsourcing the IS function --- is it necessary for your organization, Information Systems Management, 9(3), 44--50.
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Lacity, M. and Willcocks, L. (2001) Global Information Technology Outsourcing, John Wiley and Sons.
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Loh, L. and Venkatraman, N. (1992) Diffusion of Information Technology Outsourcing: Influence Sources and the Kodak Effect, Information Systems Research 3:4 Sloan School of Management, MIT, Cambridge, Massachusetts.
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Lokachari, P. and Mohanarangan, M. (2002) Outsourcing of information technology services: A decision making framework, TCA, Minneapolis, USA, URL: http://www.tcs.com/industry_practices/retail/insight_it_services.htm.
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Mikhailov, L. (2003) Deriving priorities from fuzzy pairwise comparison judgments, Fuzzy Sets and Systems, 134, no. 3, 365--385.
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Pandey, V. and Bansal, V. A, Decision-Making Framework for IT Outsourcing using the Analytic Hierarchy Process, URL: http://www.iitk.ac.in/ime/veena/ahp_icsci04.pdf.
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Roy, B. (1988) Main sources of inaccurate determination, uncertainty and imprecision in decision models, in B. Munier and M. Shakun, editors, Compromise, Negotiation and group decision, 43--67. Reidel, Dordrecht.
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Saaty, T. (1988) Multicriteria decision making: The analytic hierarchy process, RWS Publications, Pittsburgh PA
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Tsoukiàs, A. (1997) Sur la généralisation des concepts de concordance et discordance en aide multicrit're à la décision, Université Paris Dauphine, appeared also as Document du LAMSADE. n. 117.
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Willcocks, L. P., Fitzgerald, G. and Fenny, D. (1995) Outsourcing IT: The strategic implications. Long-Range Planning, 28(5), 50--70.

Cited By

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  • (2020)Group decision on the evaluation of outsourcing for information systems employing interval-valued hesitant fuzzy modelingNeural Computing and Applications10.1007/s00521-020-05059-3Online publication date: 25-Jun-2020
  • (2017)Selection of IT outsourcing services’ activities considering services cost and risks by designing an interval-valued hesitant fuzzy-decision approachJournal of Intelligent & Fuzzy Systems10.3233/JIFS-15252032:6(4081-4093)Online publication date: 23-May-2017
  • (2010)A RUP-Based Process Pattern for Software Development OutsourcingProceedings of the 2010 International Conference on Service Sciences10.1109/ICSS.2010.54(363-369)Online publication date: 13-May-2010
  • Show More Cited By

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cover image ACM Conferences
SAC '05: Proceedings of the 2005 ACM symposium on Applied computing
March 2005
1814 pages
ISBN:1581139640
DOI:10.1145/1066677
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 13 March 2005

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Author Tags

  1. analytic hierarchy process
  2. decision support
  3. fuzzy decision-making
  4. multi-criteria decision-making
  5. outsourcing

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SAC05
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SAC05: The 2005 ACM Symposium on Applied Computing
March 13 - 17, 2005
New Mexico, Santa Fe

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Overall Acceptance Rate 1,650 of 6,669 submissions, 25%

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Cited By

View all
  • (2020)Group decision on the evaluation of outsourcing for information systems employing interval-valued hesitant fuzzy modelingNeural Computing and Applications10.1007/s00521-020-05059-3Online publication date: 25-Jun-2020
  • (2017)Selection of IT outsourcing services’ activities considering services cost and risks by designing an interval-valued hesitant fuzzy-decision approachJournal of Intelligent & Fuzzy Systems10.3233/JIFS-15252032:6(4081-4093)Online publication date: 23-May-2017
  • (2010)A RUP-Based Process Pattern for Software Development OutsourcingProceedings of the 2010 International Conference on Service Sciences10.1109/ICSS.2010.54(363-369)Online publication date: 13-May-2010
  • (2008)Intelligent Mobile Computing to Assist in the Treatment of Depression2008 Third International Conference on Pervasive Computing and Applications10.1109/ICPCA.2008.4783691(650-655)Online publication date: Oct-2008
  • (2008)Capturing and Using QoS Relationships to Improve Service SelectionProceedings of the 20th international conference on Advanced Information Systems Engineering10.1007/978-3-540-69534-9_25(312-327)Online publication date: 16-Jun-2008

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