Title: Decision making linked to the outsourcing risks

Authors: Salma Bellaaj, Abderrahmen El Mhamedi, Younes Boujelbene, Lyes Kermad

Addresses: Higher Institute of Industrial Management, University of Sfax, Route de Mharza km 1, 5 – B.P. 1164 – 3018, Sfax, Tunisia. ' Higher Institute of Industrial Management, University of Sfax, Route de Mharza km 1, 5 – B.P. 1164 – 3018, Sfax, Tunisia. ' Higher Institute of Industrial Management, University of Sfax, Route de Mharza km 1, 5 – B.P. 1164 – 3018, Sfax, Tunisia. ' Higher Institute of Industrial Management, University of Sfax, Route de Mharza km 1, 5 – B.P. 1164 – 3018, Sfax, Tunisia

Abstract: The examination of outsourcing – the purchase of goods or services that were previously provided internally (Lacity and Hirschheim, 1993a) – has been an investigation domain for several years. When we consider the potential gains that can be achieved through outsourcing, most of academic discussions have addressed the questions of |why|, |what| and |how| to outsource. This research focuses on |what are the risks of outsourcing?|. In fact, certain decisions of outsourcing involve unforeseen risks. So, our goal in this research consists in proposing modes and steps of adaptation to the risks related to the strategies of outsourcing and adapting those within a sample of Tunisian outsourced companies. The suggested assistance to these firms consists in developing an interactive system of decision-making aid which allows them to diminish the effect of risk on success of the strategy.

Keywords: outsourcing strategies; risk analysis; analytical hierarchy process; AHP; hierarchical decision making; case-based reasoning; CBR; Mary Lacity; Rudy Hirschheim; potential gains; unforeseen risks; Tunisia; outsourced companies; interactive systems; decision sciences; risk management.

DOI: 10.1504/IJDSRM.2011.040747

International Journal of Decision Sciences, Risk and Management, 2011 Vol.3 No.1/2, pp.54 - 69

Published online: 20 Jun 2011 *

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