National Architects, Inc., a San Francisco–based designer of high-rise office buildings, has decided to outsource its information technology (IT) function. Three outsourcing providers are being actively considered:

one in the U.S., one in India, and one in Israel.

APPROACH c National’s VP–Operations, Susan Cholette, has made a list of seven criteria she considers critical. After putting together a committee of four other VPs, she has rated each firm (boldface type, on a 1–5 scale, with 5 being highest) and has also placed an importance weight on each of the factors, as shown in Table 2.3.

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IMPORTANCE WEIGHT TABLE 2.3 Factor Ratings Applied to National Architects' Potential IT Outsourcing Providers FACTOR (CRITERION)* OUTSOURCE PROVIDERS TELCO (ISRAEL) BIM (U.S.) S.P.C. (INDIA) 1. Can reduce operating costs .2 2x3= .6 2. Can reduce capital investment .2 .2 x 4 = .8 .2 x3= .6 .2 x 3 = .6 .2 x 5 = 1.0 .2 x 3 = .6 3. Skilled personnel .2 .2 x 5 = 1.0 .2 x 4 = .8 4. Can improve quality .1 .1 x 4 = .4 .1 x 5.5 5. Can gain access to technology not .1 .1 x 5 = 5 .1 x 3.3 .2 x 3 = .6 .1 x 2 = .2 .1 x 5 = .5 in company 6. Can create additional capacity 7. Aligns with policy/philosophy/culture Total Weighted Score .1 .1 x 4 = .4 .1 1 x 2 = 2 .1 x 2 = .2 .1 x 3 = 3 .1 x 4 = .4 .1x5 = 5 3.9 3.3 3.8