Title: A Quantitative model for analysing IS outsourcing decisions

Authors: Chun-Hung Cheng, Jaydeep Balakrishnan, Wai-Chi Wong

Addresses: Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shatin, NT, Hong Kong SAR. ' Operations Management Area, Haskayne School of Business, University of Calgary, Calgary, Alberta, Canada T2N 1N4. ' Centre of Cyber-Logistics, The Chinese University of Hong Kong, Shatin, NT, Hong Kong SAR

Abstract: In this research, we propose a quantitative model to systematically evaluate outsourcing decisions. Our model is unique in many ways. For instance, it takes the costs of insourcing, outsourcing and coordination into consideration simultaneously. Further, the inter-related nature of tasks is addressed; and the performance of a vendor is also considered. The problem is formulated as a mixed integer programming model and is solved using a practical spreadsheet-based optimiser. Finally, managerial implications from our model are discussed.

Keywords: outsourcing; information systems; quantitative models; optimisation; decision models.

DOI: 10.1504/IJSOI.2006.011013

International Journal of Services Operations and Informatics, 2006 Vol.1 No.3, pp.221 - 232

Published online: 03 Oct 2006 *

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