Title: Managing risk in information technology outsourcing: an approach for analysing and prioritising using fuzzy analytical network process

Authors: Abbas Keramati; Homa Samadi; Salman Nazari-Shirkouhi

Addresses: Department of Industrial Engineering, College of Engineering, University of Tehran, P.O. Box 11155-4563, Tehran, Iran ' Department of Industrial Engineering, Islamic Azad University, South Tehran Branch, P.O. Box 11155-4563, Tehran, Iran ' Department of Industrial Engineering, College of Engineering, University of Tehran, P.O. Box 11155-4563, Tehran, Iran

Abstract: For achieving potential benefits such as cost reduction, improved quality of services and access to technological expertise, information technology outsourcing (ITO) is a favourable option for many organisations. But ITO processing activities is a complex issue that entails considerable risks that it sometimes leads to undesirable consequence. The main purpose of this study was that identify the risk factors related to ITO projects by considering literature review of key articles published in the time period of 1998 to 2011 and then propose a structure for evaluating and prioritising of them. Risk factors are studied domestically from the perspective of client. Because of network structure of the proposed method and multi-dimensional nature of risk, fuzzy analytical network process (F-ANP) for prioritising of risk factors based on experts' judgments have been used. According to experts' opinions in Iranian organisations, risk factor "supplier's lack of expertise with an IT operation" has been identified as the best risk factor. Also, risk factor 'Relatedness' has the lowest priority.

Keywords: information technology outsourcing; ITO; priority; fuzzy ANP; analytical network process; F-ANP; domestic outsourcing; client perspective; risk management; literature review; Iran; supplier expertise.

DOI: 10.1504/IJBIS.2013.052052

International Journal of Business Information Systems, 2013 Vol.12 No.2, pp.210 - 242

Available online: 11 Feb 2013 *

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