Measuring and Evaluating Efficiency on IT Outsourcing operations through Data Envelopment Analysis

2016 ◽  
Vol 12 (1) ◽  
pp. 1-20 ◽  
Author(s):  
João Correia dos Santos ◽  
Miguel Mira da Silva

Information Technology (IT) outsourcing is a set of IT services that require providers to manage a long relationship with multiple services that have a high degree of variance between clients. IT outsourcing operational contexts display multi-input and multi-output variables, so managers need guidance on developing suitable approaches in order to identify the set of variables to analyse. This work proposes a model based on Data Envelopment Analysis (DEA), which is a linear programming technique able to manipulate multiple inputs and outputs. DEA allows the identification of the most efficient operation, which in turn enables providers to set the best operational strategy to follow. The results demonstrate the importance of quantitative measures in a dynamic business environment like IT outsourcing. To develop the authors' research, design science research was applied, and eighteen IT outsourcing contracts were used to demonstrate their model's utility. This work is a major contribution for measuring efficiency in IT outsourcing operations.

Author(s):  
João Correia dos Santos ◽  
Miguel Mira da Silva

During the last decades, the IT service sector has been one of the fastest growing segment in the global economy, consequently, Information Technology (IT) outsourcing providers face several challenges: contracts are based on a multi-service configuration; high degree of variance between clients; market dynamism through rivalry, accelerated innovation, client requisites and relationship management. As a result, service providers employ several tools and methods to find the best fit between standardization (mainly for productivity increase) and customization (primarily for client satisfaction), because IT outsourcing operational context display a multi-input and multi-output set of variables that need to be known and managed, thus efficiency measurement is essential to delivery optimised IT operations. The purpose of this work is to identify, describe, evaluate and present a model based on Data Envelopment Analysis (DEA), which is a linear programming technique able to manipulate multiple inputs and outputs. DEA allows the identification of the most efficient operation that enables providers to set the best operational strategy to follow. To develop our research, design science research was applied, and eighteen contracts were used to evaluate our model's utility the results show the importance of quantitative measures in a dynamic business environment like IT outsourcing. This work is a major contribution for measuring efficiency in IT outsourcing operations.


Author(s):  
Mohammad Amin Zare ◽  
Mohammad Taghi Taghavi Fard ◽  
Payam Hanafizadeh

This article proposes a model to make an assessment of efficiency in Information Technology (IT) outsourcing in research centers through data envelopment analysis (DEA). In this research input and output variables of DEA model for assessment of IT outsourcing efficiency distinguished. The decision-making units (DMUs) include 36 research centers in Iran. Expenses and capabilities of contractors represent the inputs and the satisfaction of users, risks, and quality constitute the outputs. In order to calculate the input and output values, a questionnaire has been conducted to DMUs. Afterwards, BCC model has facilitated the calculation of the efficiency of the DMUs and classifies efficient and inefficient units. In addition, Anderson Peterson's model is used for ranking efficient DMUs. This research has brought us to the conclusion that the variables of risk and quality account for the biggest shares in efficiency improvement of non-efficient DMUs.


2021 ◽  
Vol 11 (9) ◽  
pp. 4209
Author(s):  
Theodore Papatheodorou ◽  
John Giannatsis ◽  
Vassilis Dedoussis

Data Envelopment Analysis (DEA) is an established powerful mathematical programming technique, which has been employed quite extensively for assessing the efficiency/performance of various physical or virtual and simple or complex production systems, as well as of consumer and industrial products and technologies. The purpose of the present study is to investigate whether DEA may be employed for evaluating the technical efficiency/performance of 3D printers, an advanced manufacturing technology of increasing importance for the manufacturing sector. For this purpose, a representative sample of 3D printers based on Fused Deposition Modeling technology is examined. The technical factors/parameters of 3D printers, which are incorporated in the DEA, are investigated and discussed in detail. DEA evaluation results compare favorably with relevant benchmarks from experts, indicating that the suggested DEA technique in conjunction with technical and expert evaluation could be employed for evaluating the performance of a highly technological system, such as the 3D printer.


10.19082/3266 ◽  
2016 ◽  
Vol 8 (11) ◽  
pp. 3266-3271
Author(s):  
Mohammad Meskarpour Amiri ◽  
Taha Nasiri ◽  
Seyed Hassan Saadat ◽  
Hosein Amini Anabad ◽  
Payman Mahboobi Ardakan

Author(s):  
Abdulwahed Mohammed Khalfan ◽  
Majed Z. Al-Hajery ◽  
Khamis Al-Gharbi

As organisations need diverse and high quality IS/IT services to survive and excel in the rapidly changing business environment (Lacity & Willcocks, 2001), regular attempts have been made by organisations to sustain competitiveness through increasing their investments in IS/IT operations and resources. However, this has pushed for pursuing different options and alternatives as organisations strive to maximise their flexibility and control (Lacity, Willcocks, & Feeny, 1996). To accomplish this objective, more and more organisations are constantly looking to IS/IT outsourcing by external vendors as a viable option rather than pursuing in-house IT developments (Lacity & Willcocks).


2020 ◽  
Vol 13 (6) ◽  
pp. 1187-1217
Author(s):  
Negin Berjis ◽  
Hadi Shirouyehzad ◽  
Javid Jouzdani

PurposeThe main purpose of this paper is to propose a new approach to determine the project activities weight factors using data envelopment analysis. Afterward, the model is applied in Mobarkeh Steel Company as a case study. Accordingly, the project schedule and plans can be written on the basis of the gained weight factors.Design/methodology/approachThis study proposed an approach to determine the weights of activities using Data Envelopment Analysis. This approach consists of four phases. In the first phase, project activities are extracted based on the work breakdown structure. In the second phase, the parameters affecting the importance of activities are determined through a review of the related literature and based on the experts' opinions. In the third phase, the proper data envelopment analysis model is chosen and the inputs and outputs are signified. Then, the activities' weights are determined based on the efficiency numbers. Finally, the model is solved for the case of Isfahan Mobarakeh Steel Company.FindingsThe proposed method aimed to calculate the project activities weight factor. Thus, influential parameters on project activities importance include activity duration, activity cost, activity importance which includes successors and predecessors, activity difficulty which includes skill related (education and experience), safety, communication rate, intellectual effort, physical effort, unfavorable work conditions and work related hazards, have been recognized. Then, Projects' data were extracted from the organizational expert's opinions and recorded data in documents. Thereupon, applying DEA, the activities weight factor were calculated based on the efficiency numbers. The results show that the model is applicable and has promising benefits in real-world problems.Originality/valuePlanning is one the most fundamental steps of project management. The ever-growing business environment demands for more complex projects with larger number of activities wants more efficient project managers. Organizational resources are limited; therefore, activities planning is a critical from the perspectives of both managers and researchers. Knowing the importance of the activities can help to manage activities more efficient and to allocate time, budget, cost and other resources more accurate. Different elements such as cost, time, complexity, and difficulty can affect the activity weight factor. In this study, the proposed approach aims to determine the weights of activities using Data Envelopment Analysis.


Sign in / Sign up

Export Citation Format

Share Document