The Research On Offshore Software Outsourcing Project Portfolio Selection Model

With the rapid development of information technology and the speeding-up of the business globalization, the global industrial structure constantly adjusted. The progress of science and technology reduce the transaction costs of multinational corporations for world-wide allocation of resources. Many multinational corporations will outsource their non-core business to other companies, especially the enterprises with lower cost in other countries. Thus, the development of offshore software outsourcing becomes very quick. With the development of information technology, especially the continuing popularity of internet technology and applications, make the coded and digitized software services can directly transmission through the network, reduced the transaction cost in international trade. Nowadays, the market scale of the global offshore software outsourcing has been growing at a double-digit rate every year. However, the failure rate of offshore software outsourcing project is very high. How to find the balance between the returns and risk under the uncertain conditions, project managers and scholars urgently need to address the problem.In this paper, the offshore software outsourcing project portfolio selection problem is studied and it mainly finished the following work:(1) This paper systematically analyzes the offshore software outsourcing project portfolio. This paper uses state tree to get the exogenous uncertainty for each phase and uses decision tree to represent the related decisions making by decision maker in every possible condition for each project. At the same time, this paper considers the resource dependence relationship among the projects and analyses the risks and benefits of offshore software outsourcing project portfolio according to the relevant risk measurement methods and decision-making rule.(2) This paper establishes a multi-stage offshore software outsourcing project portfolio selection model. Considering the decision makers will flexibly adjust strategies according to the variation of external information, this paper builds an offshore software outsourcing project portfolio selection model. Considering the uncertainty of future benefits, this paper introduces fuzzy project benefits to set up a corresponding fuzzy programming model.(3) This paper offers an application research of proposed method. Take SAP Company as an example, the proposed method in practical application is given in detail. And it proves the effectiveness and feasibility of the proposed method.The offshore software outsourcing project portfolio selection model and method proposed in this paper, effectively solve the problem of offshore software outsourcing project portfolio selection and provide methodological support to solve other project portfolio selection problems, which have important learning value and practical meanings.