Selecting Outsourcing Strategies in Single Level Bidirectional Service Supply Chain: A Proposed Approach

Abstract

The purpose of this paper is to propose an approach for selecting outsourcing strategies in single level bidirectional service supply chain. For this purpose, analytic hierarchy process (AHP) technique has been used for selecting two factors that have maximum influence on service outsourcing decisions. Selected factors have been integrated with quadrant analysis for selecting outsourcing strategies. Two questionnaires have been developed to indicate the importance and correlation of objectives of outsourcing and choosing factors that have influence on service outsourcing decisions in the selected service supply chain of a hospital in Isfahan, Iran. Questionnaires have been fulfilled by senior managers and supervisors the hospital. The results indicate that customer contact and relative capability position in the process have maximum affect on service outsourcing decisions in the selected service supply chain and when relative capability position in the process is high, it is better for the decision makers to keep process internal, i.e. in-sourcing since it provides more competitive advantages.

Key words: Outsourcing; Service Supply Chain Management (SSCM); Health care; AHP; Quadrant Analysis