Multiattribute analysis of the offshore outsourcing location decision using a decision support system framework

Abstract

Today's global business environment, characterised by unprecedented competitive pressures and sophisticated customers that demand speedy solutions, creates a large set of potential suppliers to evaluate and select from. The business landscape is currently witnessing widespread migration of services and functions from developed nations like the USA to destinations like India, China, the Philippines, Malaysia, Singapore, Hungary, Poland, New Zealand and other countries. Several factors influence the outsourcers to offshore effectively and efficiently. This paper presents a structured framework with subjective and objective factors for guiding the outsourcers in making the decision on the proper outsourcing location. Based on this, a Decision Support System (DSS) framework was developed to provide a way for outsourcers and practitioners to have a more comprehensive approach to the outsourcing location decision. The process illustrates the way the system aids management in the offshore outsourcing decision through knowledge support.