Developing an Outsourcing Decision Model Based on ELECTREI Method

An ever-increasing trend in today´s firms is to exploit outsourcing for those activities deemed to be outside the company´s core business. Given the multi-objective nature of outsourcing decision, this paper presents a decision method using ELECTREI method to help users in structuring the outsourcing problems. The proposed method generates numeric values to divide activities of a company into core activities, core-close activities, core-distinct activities and disposable activities, then the decision maker can decide which activities should adopt outsourcing strategy under consideration. Finally, it draws a conclusion that this outsourcing decision approach is very well suited as a decision-making tool for initial outsourcing decisions from the application which given to illustrate the use of the proposed approach.