Developing outsourcing strategies for MIS: a mathematical programming approach

As organizations introduce new systems and phase out legacy systems, they weigh alternatives regarding the transfer of applications to new platforms, outsourcing of applications development of applications in-house, and outsourcing of the development of applications. They also recruit new talent and develop new competence in existing staff. When MIS plans are too ambitious, schedules must be altered or additional resources must be acquired. To deal with these complexities, a mixed integer programming model is proposed. The model, developed for the information services division of a state governmental agency, is used to study the economies of different combinations of full-time staff contract workers and outsourcing to implement MIS plans. We present the model and describe experience with its use.