A Decision Model for IS Outsourcing Based on AHP and ELECTREIII

Information systems (IS) outsourcing decision is a complex problem that is often faced by the decision makers involved in the planning process. There is a few of literature that addresses the IS outsourcing decision making process in a quantitative way. Given the multi-attribute nature of IS outsourcing decision, this paper argues that five factors, including, strategy, economics, risk, environment and quality, should be considered for IS outsourcing decisions. Furthermore, the paper applies a hybrid AHP and ELECTREIII methods to the IS outsourcing question in an effort to demonstrate one quantitative approach to this complex decision. In applying the model, it shows that the model is very well suited as a decisionmaking tool for the IS outsourcing decision. Finally, potential issues for future research are presented.