An enhanced supplier selection model based on optimized analytic network process towards sustainable information technology outsourcing

Information Technology Outsourcing (ITO) has become part of the organization’s strategy as it offers benefits such as high-quality products, cost reduction, and increased productivity. Essentially, ITO is a complex process in which selecting the right supplier involves evaluation of multi criteria. To ensure the sustainable of the ITO project, the evaluation criteria should consider risk factors and other sustainability criteria of the project. However, existing ITO supplier selection models lack of sustainability criteria and risk factors. Moreover, these methods rely on human judgment in weight allocation. Therefore, this study proposes an Enhanced Supplier Selection Model (ESS) for sustainable ITO mainly to eliminate human judgment in Analytical Network Process (ANP) method. The ESS Model was constructed through theoretical, exploratory and experimental studies. The exploratory study was carried in Thailand using survey which involved 45 respondents. Findings from the study was used to construct evaluation criteria and become datasets for ESS. The proposed ESS Model was evaluated using expert reviews and case studies in Thailand. The ESS model contains two main components: evaluation criteria and a decision-making method. The first has nineteen (19) sustainability criteria and seven (7) risk factors. While the latter is an enhanced ANP with Firefly Algorithm (ANP-FA). The evaluation results indicate that the Consistency Ratio (CR) for ANP-FA is smaller than ANP, which is 0.003 compared to 0.031. This outcome shows that the ESS model is feasible in removing human judgment in supplier selection of ITO projects. The study’s contributions can be interpreted from two perspectives. The proposed ESS model is a theoretical contribution in Multi-Criteria Decision-Making and Supplier Selection in ITO project. In terms of practicality, the model has been realized in Thailand organizations to ensure the sustainability of ITO projects

Determining Multi-Criteria Supplier Selection towards Sustainable Development of IT Project Outsourcing

Due to competitiveness in the global business, many organizations have sought alternative to improve their businesses and operations by outsourcing projects and this includes Information Technology (IT) projects. Selecting the most suitable IT supplier is important to ensure sustainable development of the projects. Supplier is selected based on a set of criteria used in the decision process. The criteria can be comprised into tangible and intangible criteria. Many studies have attempted to determine the criteria to be used in selecting IT supplier, nevertheless, it has yet to be reported on a standardize set of criteria to be used in IT outsourcing projects. Thus outsourcing decisions are often made under uncertainty and incomplete information which leads to weak decision and high risk of projects failure. Therefore, the study aimed to determine multi-criteria for supplier selection in order to ensure the sustainable development of IT outsourcing projects. The criteria were identified using comprehensive review approach that utilizes searching information related to multi criteria supplier selection in IT outsourcing and successful criteria of IT outsourcing projects. As a result, the identified criteria is proposed as a standardize criteria in selecting supplier for IT outsourcing projects. Such a contribution is hoped to benefit businesses for various IT outsourcing projects

Determining multi-criteria supplier selection towards sustainable development of IT project outsourcing

Due to competitiveness in the global business, many organizations have sought alternative to improve their businesses and operations by outsourcing projects and this includes Information Technology (IT) projects. Selecting the most suitable IT supplier is important to ensure sustainable development of the projects. Supplier is selected based on a set of criteria used in the decision process. The criteria can be comprised into tangible and intangible criteria. Many studies have attempted to determine the criteria to be used in selecting IT supplier, nevertheless, it has yet to be reported on a standardize set of criteria to be used in IT outsourcing projects. Thus outsourcing decisions are often made under uncertainty and incomplete information which leads to weak decision and high risk of project’s failure. Therefore, the study aimed to determine multi-criteria for supplier selection in order to ensure the sustainable development of IT outsourcing projects. The criteria were identified using comprehensive review approach that utilizes searching information related to multi criteria supplier selection in IT outsourcing and successful criteria of IT outsourcing projects. As a result, the identified criteria is proposed as a standardize criteria in selecting supplier for IT outsourcing projects. Such a contribution is hoped to benefit businesses for various IT outsourcing projects

An Analysis of Comparison on Weighted AHP for Improving Supplier Selection in IT Outsourcing

Due to the increase of competency and competitiveness, most organizations are adopting IT outsourcing (ITO) concepts and incorporating them into their main business strategy. ITO offers the benefits that includes cost reduction, improvement in staff ability as well as rapidly accessing and employing new technology. Thus, supplier selection has become a significant process in the organization.However, supplier selection is a complex decision making process which involves evaluation of more than one criterion. Each criterion carries a different weight which are usually defined by the experts. This paper presents the realization of Analytic Hierarchy Process (AHP) to define the priority weight in the supplier selection process. It is operationalized on three datasets which were obtained from the literature. Consequently, a reasonable priority weight vector was chosen to be used in the supplier selection of ITO projects