An analysis of IT/IS outsourcing provider selection for small- and medium-sized enterprises in Taiwan

Outsourcing is important in highly diversified business environments, but while there have been many studies on outsourcing, none have explicitly tackled the problem of how SMEs should assess and select their outsourcer. Numerous benefits might be gained if SMEs could utilize evaluation models to help select their IT/IS outsourcer effectively. Prejudices arising from selection through impartial analysis could be avoided and a more accurate and an objective decision could be made. We investigated the selection process of an enterprise needing an IT/IS outsourcing provider in Taiwan. Our recommended process quantitatively sorts the criteria using the AHP. An evaluation model was developed based on the needs of the SME who should use it to obtain a better outsourcing provider resulting from improved information vital to maintain outsourcing efficiency. Use of our model should reduce costs and potential risks in adopting new IT/IS applications and promote an objective standard with which to evaluate IT/IS outsourcing providers.