Building a Decision Model for Outsourcing IT Services in Philippine Perspective

Outsourcing has emerged as a dominant and revolutionary business practice. It is no longer just about cost saving but now a strategic tool in the 21st century global economy. Leaders can no longer look at outsourcing as a choice or a business tactic, it has become vital-to outsource-to compete in the world stage. This study has contextualized the Decision Model it established in the Philippine context of BPO industry through a scorecard. Results from surveys were tested with Descriptive and ANOVA testing to show significant differences of the identified factors, which then were computed through Multi-Criteria Decision Model tool which is an Analytical Hierarchy Process with Risk Management. The results of the study have several implications for decision makers (i.e. client and vendors). First, decision factors that are applicable globally are also the same factors that are considered by clients when they come in the Philippines' outsourcing industries. Second, executives or the decision makers considering their outsourcing partners should identify their own (organization) pros and cons and use their own quantitative decision model within their organization. Third, since it is up to the executives or decision makers to assess the factors in choosing an outsourcing partner, they need to have a clear picture of their priorities in outsourcing their processes.