IT Outsourcing Strategy Selection: The Case of Iranian Banking Industry

In today’s businesses world, effective use of information technology (IT) has a significant role in the success of organizations. Outsourcing strategy is the process of determining whether or not to outsource and, if so, what to outsource. Outsourcing selection is the process of finding and evaluating potential outsourcing partners. Outsourcing implementation is where the relationship between outsourcing partners is defined and established. Consequently, selection of effective strategy for outsourcing is an important decision for managers. This strategy is also important in the Iranian banking industry, since there are different qualitative criteria and especial condition while banking managers are faced with some challenges. This article aims to study IT market in Iran. More specifically, it focuses on banking industry to determine proportionate criteria for Iranian banking system while suggesting a hierarchical model for IT outsourcing strategy. This model helps executive managers of the Iranian banking system to select the best IT outsourcing strategy.