Evaluation of Outsourcing Service Providers’ Performance on Analytic Hierarchy Process to Support Decision making

Abstract:

On the premise of outsourcing strategy, the process of selecting outsourcing service providers should be analyzed. By using the method of analytic hierarchy process(AHP), the performance measurement indexes of providers were divided into four parts, namely cooperating, service, just in time (JIT) and cost. These indexes should be quantized, so that corporates could evaluate the comprehensive providers’ performance by calculating the weight of indexes and their evaluation, thereby they could select the provider with the highest score. Finally, an applied case was given to show the feasibility of this method.

Key words:analytic hierarchy process(AHP); service outsourcing; providers selecting