Decision Making in Information Systems Outsourcing: an Integrated Approach based on Fuzzy AHP and ELECTRE

In the two last decades, outsourcing of information systems (IS) functions inorganizations has markedly increased. Attempting to remain competitive inthe rapidly developing world of computer technology is becoming a burden tomany organizations, and hiring outsiders to handle part or even all of itsinformation services may help an organization provide better services andacquire and maintain competitive advantage. Information systems (IS)outsourcing is one of the key contexts in management. The decision tooutsource information systems (IS) functions in managing andoutsourcing process management is important subject for organizations.In this study, an integrated fuzzy group decision-making approachbased on fuzzy AHP and ELECTRE for IS outsourcing decisionproblem is presented. To form problem structure, seven criteria and fiveInformation System Projects (ISPs) are determined. The fuzzy settheory has been developed for dealing with the problems arising fromthe vagueness, ambiguity, and subjectivity of human judgment. In theproposed methodology, the weights of the criteria are generated by afuzzy AHP analysis. Next, ELECTRE is used to assess the finalranking. Our proposed methodology was implemented in an actual case.

Keywords:

Information Systems Outsourcing , Fuzzy AHP , ELECTRE