Monday, July 28, 2008

Analytical framework for decision criteria: Onsite-Offshore mix in outsourcing engagement

Having used the AHP and a simple linear graph to translate the AHP score to Onsite Offshore mix for a outsourcing solution in IT (some 4 years back), I realized the futility of the model premised on MECE criteria for the factors. On reading ANP (http://chern.ie.nthu.edu.tw/IEEM7103/937805-paper-1-may6.pdf) and weighted graphs, I was curious which of these technique is most suitable to determine the Onshore-Offshore mix for a outsourcing solution.

ANP: This technique is better suited than AHP as it will consider the internal dependence and cross dependence between factors, the issue however is that it still does a pairwise comparision as we did in the AHP model within the cluster. But, usually some factors can appear in more than one cluster and can have interdependency.

Weighted graph: The weighted graph model is better suited than AHP and ANP as it has the benefits of ANP, without ANP issues (factors interrelationship across clusters can be suitably represented).

The scores we get from the ANP or weighted graph can then be used to transform into a onshore-offshore mix.

3 comments:

  1. Hi Sunil

    Please describe how you have used weighted graph method and if you have a comparative study it will be a great paper. I havent applied ANP so far, although AHP I have applied everywhere and my experience has been very positive in whatever I have applied it to.

    Looking forward to learn from your experiments!

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  2. Navneet

    I've nothing against AHP, and thanks to you for helping me apply it for OO-Mix. The reaction was mixed while applying the model you helped enhance with AHP. Ofcourse I've read your book on AHP and even indicated that I could've used it for a tool evaluation consulting company that I did with just weightages and scores.

    I think we debated whether ANP could be used considering the limitation of AHP. I read the paper on ANp and it sparked ideas.

    I read about weighted graphs and it sparked even more opportunities.

    Maybe we can develop this together if you are interested. I've my ideas and strong point of view on it too :-)...

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  3. I thought you already have done the experiments. Well if that is not the case, I am game for it. Please send me weighted graph method info.

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