Abstract

This study deals with the problem of outsourcing management, presenting a structure to support decision-making on effective information-technology outsourcing and highlighting the advantages and disadvantages that must be addressed. Since the study involves multiple variables, partially defined and conflicting objectives, and the will of decision-makers to broaden their understanding of the impact of decisions, the study used the multicriteria decision aid constructivist method to lead data collection and analysis. The chief results presented are: (i) a structured appraisal arranged by 8 strategic objectives and 107 performance indicators; (ii) the strengths and weaknesses of the status quo; and (iii) a process diagram for generating improvements. To ensure presentation of scientific and practical recognition in accordance with the constructivist path, the epistemological view adopted meets the scientific and practical requirements to ensure validity, legitimacy, and effectiveness of a model to support a decision-making process in a practical environment.

Highlights

  • IT stands as one of the most fruitful areas for outsourcing by its operating nature and its history (Lacity & Willcocks, 2001; Lee, Huynh, Kwok, & Pi, 2003; Lacity, Khan, & Yan, 2016)

  • This section describes the construction of a performance-appraisal model using the MCDA-C method, and includes:

  • Illustration of the recommendations phase with an improvement action plan

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Summary

Introduction

IT stands as one of the most fruitful areas for outsourcing by its operating nature and its history (Lacity & Willcocks, 2001; Lee, Huynh, Kwok, & Pi, 2003; Lacity, Khan, & Yan, 2016) The fact that it is a focus of analysis in several IT management models reflects the criticality of outsourcing (De Haes, Van Grembergen, & Debreceny, 2013; Sahibudin, Sharifi, & Ayat, 2008). The interest in IT outsourcing has escalated mainly because IT has become more pervasive (Gorla, Somers, & Wong, 2010; Vodanovich, Sundaram, & Myers, 2010) with the digital transformation of business (Westerman, Bonnet, & McAfee, 2014) Alongside this rise in IT, an increasing preoccupation with external IT provisioning occurs in all business models that require integration, stability, and agility in a shifting organizational environment—features associated with IT quality (Ensslin et al, 2015).

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