Question

4. Identify and discuss a strategy that could be used to manage contractors during outsourcing of IT services [25 Marks]

Answer 1

Solution: While working on a certain project in the field of Information Technology, there are times when one organization has to hire another organization to give them a contract to develop a certain product or service for them. Some of the Contractor Management Strategies that should be carried out while an organization is outsourcing another organization for a particular project are:

• The project tasks must be described to the vendor organization in the best possible way.
• The cost/budget that is allocated to the project must be thoroughly estimated and the vendor organization should be told about that.
• The vendor organization must be given a clear deadline/due date before which the vendor has to deliver the project.
• The appointment of an employee that should be the point of contact to actually negotiate as well as communicate the changes and feedback to the vendor organization should be carried out very carefully.

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