Title

A Fuzzy Logic Multi-Criteria Decision Framework for IT Outsourcing Vendor Selection

Publication Type

Presentation

Publication Date

12-2011

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.

Discipline

Computer Sciences | Management Information Systems

Research Areas

Information Systems and Management

Publication

10th Workshop on E-Business (WEB-10), 4 December, Shanghai

City or Country

Shanghai, China

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