A Variable Precision Fuzzy Rough Group Decision-Making Model for IT Offshore Outsourcing Risk Evaluation

Risks evaluation is critical for the success of IT offshore outsourcing. Based on fuzzy group decision-making (FGDM) and variable precision fuzzy rough set (VPFRS), this article proposes a new integrated model, variable precision fuzzy rough group decision-making (VPFRGDM), to evaluate the risk in IT offshore outsourcing. This model can improve the capability to handle potential errors fairness and efficiency of risk evaluation, and is verified by a numerical case. INTRODUCTION Offshore outsourcing is impacting many industries especially in information technology (IT). According to the Meta Group IT consulting firm’s forecasting, the annual offshore outsourcing rate will continue to grow at 20%, reaching $10 billion in 2005 (Rottman, 2006). Offshore outsourcing brings up opportunities and changes for both companies and many countries. Its benefit, as literally and practically illustrated, includes substantial cost savings, increased productivity, better