Modeling and Estimation of the Risk When Choosing a Provider

TL;DR

This paper introduces an algorithm to estimate the risk involved in selecting an outsourcing provider for innovation products, based on expert surveys assessing potential risks.

Contribution

It presents a novel risk estimation algorithm utilizing expert survey data to inform outsourcing provider selection decisions.

Findings

Algorithm effectively estimates provider selection risks.

Survey data quantifies materiality of different risk types.

Supports better decision-making in outsourcing choices.

Abstract

The paper provides an algorithm for the risk estimation when a company selects an outsourcing service provider for innovation product. Calculations are based on expert surveys conducted among customers and among providers of outsourcing. The surveys assessed the degree of materiality of species at risk.