An integrated framework for prioritizing the outsourcing performance outcomes

Himanshu Prajapati · Ravi Kant · Sandeep Mani Tripathi

21 citations0/0 files storedJournal of Global Operations and Strategic Sourcing

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Outsourcing and Supply Chain Management Multi-Criteria Decision Making Delphi Technique in Research

Abstract

Purpose Outsourcing is a crucial tool for an organization to focus on its core business operations. The purpose of this study is to find critical success factors (CSFs) of outsourcing and to prioritize the performance outcomes of outsourcing because of the adoption of its CSFs. Design/methodology/approach This research proposes the hybrid framework of fuzzy Delphi, fuzzy analytic hierarchy process (F-AHP) and fuzzy additive ratio assessment (F-ARAS) to fulfill the research objectives. Fuzzy Delphi is used to finalize the CSFs of outsourcing and F-AHP provides the relative weights to it. F-ARAS is used to prioritize the outsourcing performance indicators with respect to CSFs. The empirical case investigation of three Indian large-scale public sector process industries is conducted to demonstrate the applicability of the proposed framework. Findings The result shows that increased dominance in core activity, ability to increase or decrease capacity, improved financial performance, optimized resource utilization and increased market share are the top five performance outcomes because of the adoption of outsourcing CSFs. Research limitations/implications Factors such as cultural, political, environmental and size of the organization may have a significant implication on the research results. Originality/value This is a novel approach towards the prioritization of performance outcomes of outsourcing. Moreover, the present research is a helpful tool to manage outsourcing and choosing which performance outcome of outsourcing ought to be used to measure implementation. This will help to recognize potential opportunities and preparing strategic planning for both short-term and long-term goals.

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References

2008Decision making with the analytic hierarchy process 1963An Experimental Application of the DELPHI Method to the Use of Experts 2001The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success 2000Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance 1993The max-min Delphi method and fuzzy Delphi method via fuzzy integration 2005Alliance type, alliance experience and alliance management capability in high-technology ventures 2009The application of Fuzzy Delphi Method and Fuzzy AHP in lubricant regenerative technology selection 2006Outsourcing decision support: a survey of benefits, risks, and decision factors

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