DESIGNING A MODEL FOR MAKING DECISION ABOUT OUTSOURCING ACTIVITIES IN BANKING SYSTEM
Despite the growing trend of outsourcing of financial services in recent decades, most outsourcing projects have failed due to the qualitative nature of decision-making criteria and lack of paying attention to differences in environmental conditions. The aim of this research is to design a model for decision making about outsourcing activities in the public banks. This research is applied and developmental study in terms of objective and descriptive-survey in terms of data collection method. The research tool was interview in qualitative section and a questionnaire in quantitative section. The research population included banking experts in 6 public banks and central bank. After studying the theoretical foundations and exploratory interviews, the initial model was identified. Then, the final model of the research was identified with 6 factors and 22 sub-factors using the fuzzy Delphi method. Fuzzy DEMATEL and fuzzy ANP methods were used to examine the relationship between criteria and weighting the factors. Finally, "logistics and support sector activities" option with the highest weight was rank first and selected for outsourcing using gray and fuzzy MOORA methods. Moreover, the activity of the "human resources” sector was ranked second and the "legal and claims receivable sector activities" option was ranked last.
Keywords: Decision-making, outsourcing activity, banking system
Adeleye, B. C., Annansingh, F., & Nunes, M. B. (2004). Risk management practices in IS outsourcing: an investigation into commercial banks in Nigeria. International Journal of Information Management, 24(2), 167-180.
Ai, S., Du, R., Straub, D. W., Maruping, L. M., & Miao, Y. (2019). Measuring creolization in IT outsourcing: Instrument development and validation. International Journal of Information Management, 47, 16-30.
Akbari,H,Nikzad.S,(2011),The most widely used management tools in Iranian organizations. Tadbir journal.217,24-28
Akkaya , G., Turanogù lu , B., Oztasü , S. (2015). An Integrated Fuzzy AHP And Fuzzy MOORA Approach to The Problem of Industrial Engineering Sector Choosing, Expert Systems With Applications (2015), doi: 10.1016/j.eswa.2015.07.061
Alvani , M , Ashrafzadeh , Farzad , (2012) , Outsourcing Management, a path to development Tehran,Mobtakeran.
Amoako-Gyampah, K., & Salam, A. F. (2004). An extension of the technology acceptance model in an ERP implementation environment. Information & management, 41(6), 731-745.
Assaf, S., (2011). Factors affecting oytsourcing decisions of maintenance services in saudi Arabian universities, Property Management, 29, 195-212.
Axelrod C.W, 2009 ,Combined impact of outsourcing and hard times on BPO risk and security; DOI: 10.4018/978-1-60960-123-2.ch002
Bagheri,M,Ebrahimi,A,Kiani,M,(2015),Designing Model of Factors Affecting Decision Making for Outsourcing of Activities, Journal of Management Improvement, Issue 9,No3,137-166
Blumenberg, S., Wagner, H. T., & Beimborn, D. (2009). Knowledge transfer processes in IT outsourcing relationships and their impact on shared knowledge and outsourcing performance. International Journal of Information Management, 29(5), 342-352.
Brauers,Willem, Zavadskas,Edmundas (2006).The MOOR method and its application in transition economy,control and cybernetics,Vol 35,No 2,445-471
Cheng , Ching-Hsue & Lin , Yin . (2002), Evaluating the best mail battle tank using fuzzy decision theory with linguistic criteria evaluation, European Journal of Operational Research, vol.142, p.147
Choudhry, A. Z. (2014). Application Outsourcing Governance Model: Critical components of a Successful Application Outsourcing Governance Framework.
Click, R.L. and Duening, T.N. (2004), Business Process Outsourcing: The Competitive Advantage.
Dastyari,A,Mohammadi,M,Bardestani,H,(2014),Outsourcing in Human Resource Management, First International Conference on Economics, Management, Accounting and Social Sciences.
Di Gregorio, D., Musteen, M., & Thomas, D. E. (2009). Offshore outsourcing as a source of international competitiveness for SMEs. Journal of International Business Studies, 40(6), 969-988.
Farzad,F,Maddah,M,Hamidi,A,(2012),Explanation and Evaluation of Information Technology Outsourcing Strategy, Strategic Management Studies,No 11,87-104
Fiorentino, Elisabetta (2009). “The effects of privatization and consolidation on bank productivity: comparative evidence from Italy and Germany”. Series 2: Banking and Financial Studies, (3).
Frost & Sullivan, (2004)Making IT Outsourcing Work: Journal of Strategic Information Systems, Vol.14, PP.357–387
Gottschalk, P, 2006, managing successful it outsourcing relationship .
Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: an empirical study of small and medium US businesses. Information & management, 42(1), 197-216.
Gray, J. V. (2006). Essays on manufacturing outsourcing. The University of North Carolina at Chapel Hill.
Gulzhanat Tayauova (2012) Advantages and disadvantages of outsourcing: analysis ofoutsourcing practices of Kazakhstan banks Procedia - Social and Behavioral Sciences 41 , 188 – 195
Hanafizadeh, P., & Zare Ravasan, A. (2017). An investigation into the factors influencing the outsourcing decision of e-banking services: a multi-perspective framework. Journal of Global Operations and Strategic Sourcing, 10(1), 67-89.
Henrik Höglund,(2016), Financial reporting quality and outsourcing of accounting tasks: evidencefrom small private firms. Advances in Accounting, incorporating Advances in International Accounting 35 125–134
Isa Zadeh ,S, Saheri,Z,(2012),Investigating the Effect of Macroeconomic Stability on Efficiency of Banking System, Economics, Monetary and Financial Bimonthly Journal,Issue 19,No3,53-87
Keuschnigg Ch, 2009,"Outsourcing, unemployment and welfare policy", Journal of International Economics 78,168-176 DOI: 10.1016/j.jinteco.2009.02.001
Kuhani,P,Nooronesa,R,Azimi,N(2013) Analysis of Factors Affecting Outsourcing of Organizational Activities, Supply Chain Management Quarterly,Issue 16,No43,40-46
Law, F. (2018). Breaking the outsourcing path: Backsourcing process and outsourcing lock-in. European Management Journal, 36(3), 341-352.
Lee, S. D., & Lan, S. C. (2013). Production lot sizing with a secondary outsourcing facility. International Journal of Production Economics, 141(1), 414-424.
Lewis, David, 2001, NGOs and Management” Searching for New Modles or Reinventing The Wheel”, Center for Civil Socity in London of Economics.
Masrur ,H,Tofigh,A,Ghazizadeh,Z(2018), Introducing Risk Identification and Evaluation Model for Outsourcing R&D Projects, Management Improvement Scientific Journal.Issue 8,No4,63-82
McIvor, Ronan, (2008),What is the right outsourcing strategy for your process? European Management Journal, volume 26, 24-34
Nahavandi,N,Yusefian,M,Bayat,A(2010).Determining Information Technology Outsourcing Strategy in Iranian Banks, Journal of Modern Economics and Business.No13,89-110
Nikolaos K. Liapopoulosa, Socrates J. Moschurisb, 2013, An Empirical Investigation of Outsourcing Decisions in Enterprises Operating in Greece, SPOUDAI Journal, Vol. 63 (2013), Issue 1-2, pp. 31-46
Olfat,L, Barati,M,(2010),A Model for Outsourcing Decision Making in Banking Industry and Mining, Business Strategies,Issue 19,No2,25-41
Parvyzyan, K., Naieri, F.2006. Strategic utsourcing and investment risk in the value chain, the second national conference on sustainable investment risk National Conference Center,Tehran University.,14
Perunović, Z., & Pedersen, J. L. (2007). Outsourcing process and theories. In Proceedings of the POMS 18th Annual Conference, May 4–7, Dallas, Texas, 007 (Vol. 3).
Rajabzadeh,A,Azar,A,Hoseini,A,(2010),Developing and Analyzing the Components of Outsourcing in the Public Sector, Business Strategies,Issue 19,No2,99-119
Rezaei,M,Shiraghaee,M, Mozdgir,A, (2015),Investigating the Effects of Organizational Culture on Outsourcing, Second Internal Capacity Building Conference with Contractor System Development Approach.
Schniederjans, A. (Ed.). (2006). Outsourcing management information systems. IGI Global.
Sean M.H., W.C. Benton Jr.; 2009,"Unlocking the business outsourcing process model"; Journal of operations Management 27.344-361
Sia, S. K., Koh, C., & Tan, C. X. (2008). Strategic maneuvers for outsourcing flexibility: an empirical assessment. Decision Sciences, 39(3), 407-443.
Tabatabaei,M, Mohammadi,P(2015),Investigating the Use of Outsourcing in Challenging Islamic Banking, Islamic Economics & Banking Extension,No17,59-76
Tas, J., & Sunder, S. (2004). Financial services business process outsourcing. Communications of the ACM, 47(5), 50-52.
Tayauova, G. (2012). Advantages and disadvantages of outsourcing: analysis of outsourcing practices of Kazakhstan banks. Procedia-Social and Behavioral Sciences, 41, 188-195.
Tayles. Mike ,2001,"Moving from Make/Buy to Strategic Sourcing: The Outsource Decision Process", Long Range Planning 34,605-622
Teo, T. S., Lin, S., & Lai, K. H. (2009). Adopters and non-adopters of e-procurement in Singapore: An empirical study. Omega, 37(5), 972-987.
Tjader, Y., May, J. H., Shang, J., Vargas, L. G., & Gao, N. (2014). Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model. International Journal of Production Economics, 147, 614-623.
Zailani,Suhaiza,Iranmanesh,Mohammad, Razmi,Khairful (2015),Influential factors and performance of logistics outsourcing practices: an evidence of Malaysian companies—Springer-Verlag Berlin Heidelberg 2015—published online.DOI 10.1007/S11846-015-0180-X
Zhang, Z., & Gibson, B. (2016). Determinants of outsourcing in US Municipalities: Evidence from a municipal spatial network analysis. Applied Spatial Analysis and Policy, 10(2), 253-269
Zhu, K., & Kraemer, K. L. (2005). Post-adoption variations in usage and value of e-business by organizations: cross-country evidence from the retail industry. Information systems research, 16(1), 61-84.
Zhu, W., Ng, S. C., Wang, Z., & Zhao, X. (2017). The role of outsourcing management process in improving the effectiveness of logistics outsourcing. International Journal of Production Economics, 188, 29-40.