A Quantitative model for analysing IS outsourcing decisions

In this research, we propose a quantitative model to systematically evaluate outsourcing decisions. Our model is unique in many ways. For instance, it takes the costs of insourcing, outsourcing and coordination into consideration simultaneously. Further, the inter-related nature of tasks is addressed; and the performance of a vendor is also considered. The problem is formulated as a mixed integer programming model and is solved using a practical spreadsheet-based optimiser. Finally, managerial implications from our model are discussed.