A Fuzzy Logic Multi-Criteria Decision Framework for IT Outsourcing Vendor Selection
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.
Computer Sciences | Management Information Systems
Information Systems and Management
10th Workshop on E-Business (WEB-10), 4 December, Shanghai
City or Country
A Fuzzy Logic Multi-Criteria Decision Framework for IT Outsourcing Vendor Selection. (2011). 10th Workshop on E-Business (WEB-10), 4 December, Shanghai. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/1876