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Abstract: Outsourcing software development has many advantages as well as inevitable risks. Of these risks, outsourcee selection is one of the most important. A wrong outsourcee selection may have severe adverse influence on the expected outcome of the project. We analyzed the risks involved in outsourcee selection and also provided methods to identify these risks. Using the principles of Analytical Hierarchy Process (AHP) and Cluster Analysis based on group decision making, we established an index evaluation system to evaluate and select outsourcees. Real world applications of this system demonstrated its effectiveness in evaluating and selecting qualified outsourcees.

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