Publication Type

Conference Proceeding Article

Version

acceptedVersion

Publication Date

1-2012

Abstract

Selecting IT service providers in information systems outsourcing involves both qualitative and quantitative evaluations. This paper proposes an integrated multi-criteria decision-making (MCDM) framework to effectively handle uncertainty and subjectivity in the vendor selection process. The proposed methods apply fuzzy logic approach to integrate qualitative survey data into traditional multi-criteria decision models such as data envelope analysis (DEA), analytical hierarchy process (AHP) methods, and TOPSIS. Based on case studies from Iranian banking industry, we empirically test the proposed framework and show it is superior to existing methods. We demonstrate that the fuzzy logic approach provides a robust analysis for vendor selection by appropriately trading off the perceived risks and benefits. It offers a comprehensive MCDM tool that can help practitioners prioritize vendor rankings and make optimal IS outsourcing decisions.

Keywords

Analytical Hierarchy Process, Banking industry, Data envelope analysis, Fuzzy logic approach, Information systems outsourcing, IT service providers, Multicriteria decision-making, Outsourcing decisions, Perceived risk, Quantitative evaluation, Robust analysis, Survey data, Vendor Selection

Discipline

Computer Sciences | Management Information Systems

Research Areas

Information Systems and Management

Publication

Proceedings of the 45th Annual Hawaii International Conference on System Sciences HICSS 2012: January 4-7, 2012, Maui, Hawaii

First Page

1118

Last Page

1127

ISBN

9780769545257

Identifier

10.1109/HICSS.2012.59

Publisher

IEEE Computer Society

City or Country

Los Alamitos, CA

Additional URL

http://dx.doi.org/10.1109/HICSS.2012.59

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