A Goal Programming Model for Evaluating Outsourcing Partners on a Global Scale

Abstract

A critical concern for firms that decide to outsource their information technology (IT) functions (or other operational functions for that matter) is the evaluation on a global scale of potential outsourcing partners. In order for outsourcing to be successful, corporations must identify outsourcing partners that offer a good fit with the firm’s overall outsourcing strategy. Unfortunately, little has been written to aid corporations in making complex decisions involving the evaluation of potential outsourcing partners. This chapter presents a goal programming model that combines the concepts of global outsourcing, the management science technique of goal programming, and microcomputer technology to provide managers with a more effective and efficient method for evaluating potential IT outsourcing partners. The chapter extends the existing literature on outsourcing by applying a computer optimization model to outsourcing partner selection in a way that has not been done before.