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A Case Study Using the Analytic Hierarchy Process for IT Outsourcing Decision Making

Author

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  • Mary Anne Atkinson

    (Department of Accounting, Central Washington University, Ellensburg, WA, USA)

  • Ozden Bayazit

    (Department of Finance & SCM, Central Washington University, Ellensburg, WA, USA)

  • Birsen Karpak

    (Department of Management, Youngstown State University, Youngstown, OH, USA)

Abstract

Decisions related to managing IT resources - which resources to keep in-house and which resources to outsource - are critical to business success. The goal of this paper is to show the usefulness of the Analytic Hierarchy Process (AHP) as a decision-making tool for IT sourcing decisions, based on an analysis of factors that recent literature found to be associated with IT sourcing risk. Although the AHP previously has been suggested for IT outsourcing decision making, this study is the first to consider evaluating the risks of offshore outsourcing, rural outsourcing, and in-sourcing IT processes by using the AHP. From the perspective of the expert decision maker, three IT sourcing strategies were evaluated with respect to 58 criteria. The case study example presented in this paper shows the effectiveness of the AHP to support management for this business decision. The authors' results show that a systematic approach to analyzing outsourcing can reduce the uncertainty and risk that is common in such decisions.

Suggested Citation

  • Mary Anne Atkinson & Ozden Bayazit & Birsen Karpak, 2015. "A Case Study Using the Analytic Hierarchy Process for IT Outsourcing Decision Making," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 8(1), pages 60-84, January.
  • Handle: RePEc:igg:jisscm:v:8:y:2015:i:1:p:60-84
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    Cited by:

    1. Kim, Daewon & Kim, Seongcheol, 2017. "Newspaper companies' determinants in adopting robot journalism," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 184-195.
    2. Noam Koriat & Roy Gelbard, 2018. "Knowledge Sharing Motivation Among External and Internal IT Workers," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-24, September.

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