A Quantitative model for analysing IS outsourcing decisions. (4th October 2006)

• Record Type: Journal Article
• Authors: Cheng, Chun-Hung; Balakrishnan, Jaydeep; Wong, Wai-Chi
• Is Part Of: International journal of services operations and informatics. Volume 1:Number 3(2006)
• Page Start: 221
• Page End: 232
• Publication Date: 2006-10-04
• Subjects: outsourcing -- information systems -- quantitative models -- optimisation -- decision models; Service industries -- Management -- Periodicals; Service industries -- Management -- Information technology -- Periodicals; 658.5
• Languages: English
• ISSNs: 1741-539X

Abstract

In this research, we propose a quantitative model to systematically evaluate outsourcing decisions. Our model is unique in many ways. For instance, it takes the costs of insourcing, outsourcing and coordination into consideration simultaneously. Further, the inter-related nature of tasks is addressed; and the performance of a vendor is also considered. The problem is formulated as a mixed integer programming model and is solved using a practical spreadsheet-based optimiser. Finally, managerial implications from our model are discussed.