The multi-criteria approach as a tool for developing adaptation to outsourcing risks in Algerian economic enterprises

Abstract

The current manufacturing context is characterized by the emergence of new organizational forms such as outsourcing, whose many advantages are recognized, at the same time some outsourcing decisions do not go as expected and involve unexpected risks. In this context, this study seeks to suggest ways and approaches in determining the optimal adaptation of economic institutions to the risks associated with adopting the outsourcing strategy, through the assistance that the analytical hierarchy method can provide in developing an interactive system for making an appropriate decision that is economically viable, socially acceptable and environmentally sustainable. In search of lower costs, improved productivity, higher quality, customer satisfaction and devotion to the main activities, a survey study was adopted that touched 13 economic institutions (public and private) that pledged one or more activities to an external contractor and represented the Algerian economic fabric.

The study concluded with a set of results, which confirmed that companies have adapted to financial and relationship risks as well as technical risks more than they are adapted to the rest of the risks, especially in large institutions. The results of the study also showed the ability of the AHP method to know the extent of adaptation to these risks.

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