The Analytic Hierarchy Process Decision Making Model for Outsourcing or Insourcing of Information Services Provision in the Public Sector

Abstract

Article uses an in-depth analysis of contemporary pro et contra arguments and presents research findings concerning IT outsourcing and insourcing in Slovenian public sector. In Slovenia the use of com­petitive tendering and outsourcing of IT services has been growing rapidly, many will say unfounded and irrational. Reported expenditures on contracting out in public sector in last years have doubled and in the time of global economic and financial crisis reach, roughly estimated, tens of mil­lions of euros. Contribution outlines some methodological, contextual, procedural and other considerations and eventually presents Saaty’s analytical hierarchical multi criteria decision model for planning IT outsourc­ing projects and provides guidelines on critical assessing IT outsourcing projects in Slovenian public sector