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Developing a Decision-Making Framework for Activities Outsourcing in Iranian State Banks

Author

Listed:
  • daryaei , javad

    (Islamic Azad University, Tehran South Branch)

  • Hosseini Golafshan , Ahmad

    (Islamic Azad University, Tehran South Branch)

  • Modiri , Mahmood

    (Islamic Azad University, Tehran South Branch)

  • Gelard , Parvaneh

    (Islamic Azad University, Tehran South Branch)

Abstract

Though financial services outsourcing has been increasing during the last decades, most outsourcing projects have failed due to qualitative criteria used in decision-making as well as being unaware of differences in environmental circumstances. This study aims at designing a model of deciding on outsourcing in state banks. The data of this applied, developmental research was collected, using descriptive-survey method and two instruments, namely, interview and quantitative were used in qualitative and quantitative sections, respectively. The sample of the study comprises of banking experts working in six state banks and the Central Bank of Iran. The initial model was derived, based on an analysis of the aspects of variables as well as the indices obtained from the theoretical principles and previous studies. The final research model, which consists of 6 factors and 22 subfactors was developed, using the Fuzzy Delphi Method and in triple consultation with 20 banking experts. The criteria were weighted, and the relationship between the criteria was examined, using F-DEMATEL method and ANP. The results of the study indicate that the following are the most significant criteria driving the decisions made by state banks on activities outsourcing: reliance on service providers, cost, the rapid delivery of services by the contractors, gaining competitive advantage, the existence of multiple contractors, improved control and overseeing.

Suggested Citation

  • daryaei , javad & Hosseini Golafshan , Ahmad & Modiri , Mahmood & Gelard , Parvaneh, 2018. "Developing a Decision-Making Framework for Activities Outsourcing in Iranian State Banks," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 13(4), pages 525-545, October.
    • Handle: RePEc:mbr:jmonec:v:13:y:2018:i:4:p:525-545
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    References listed on IDEAS

    as
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    7. Zhu, Wenwen & Ng, Stephen C.H. & Wang, Zhiqiang & Zhao, Xiande, 2017. "The role of outsourcing management process in improving the effectiveness of logistics outsourcing," International Journal of Production Economics, Elsevier, vol. 188(C), pages 29-40.
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    More about this item

    Keywords

    Making decision; outsourcing activities; Banking system;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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