Using analytic hierarchy process to analyze the information technology outsourcing decision

Abstract

Due to the strategic importance of IT, there exists an undeniable need for a systematic analysis before deciding whether or not a particular IT function should be outsourced. A study that provides a systematic analysis for evaluating components of the company’s IT for outsourcing may be useful to practitioners. In this paper, analytic hierarchy process (AHP) is proposed as a suitable technique for analyzing information systems outsourcing decision. An IT outsourcing case is used to demonstrate the usefulness of the proposed approach. Expert Choice is used to implement the AHP. In the case example, managing IT by the IT department seems to be the best option followed by managing it through an outsourcer. Managing IT by the end users is the least preferred technique in this particular example.