Information Technology Project Management: Providing Measurable Organizational Value, Fourth Edition

CHAPTER 12

Project Procurement Management and Outsourcing

CHAPTER OVERVIEW

Chapter 12 focuses on project procurement management—one of the nine Project Management Body of Knowledge (PMBOK®) areas. Closely related to procurement is outsourcing or the subcontracting of organizational or project components to an external party. After studying this chapter, you should understand and be able to:

• Describe the PMBOK® area called project procurement management.
• Describe the four processes that make up project procurement management.
• Describe the three general categories for procurement-type contracts.
• Define outsourcing, business process outsourcing, and offshoring.
• Describe the reasons why organizations outsource projects and project components.
• Describe the advantages and disadvantages of outsourcing.
• Describe several ways to improve the likelihood of outsourcing success.

INTRODUCTION

Project procurement management is one of the nine Project Management Body of Knowledge (PMBOK®) areas and focuses on the acquisition and management of outside products and services. Project teams require resources, and many of these resources must be acquired externally from sellers such as vendors or suppliers. This may include technology such as hardware and software for systems development or office automation tools to support the project team. Other items, such as office supplies or the printing ...