Question

What is outsourcing? How does it relate to project procurement management?

Answer 1

Outsourcing can be easily explained by its name itself, as a business practice in which a company hires another company or an individual to perform tasks, handle operations or provide services that are either usually executed or had previously been done by the company's own employees.

Outsourcing is related to project procurement management as in this every new projects on its initial stage goes through many process. The Project Management outlines four processes to support project procurement management. It is good to seek advice of specialists such as lawyers, accountants, or agents to avoid problems and conflicts. A plan procurement is done and the project manager and team may consider what products or services are available, the associated cost, quality, terms and conditions and develop a formal or informal project procurement plan for managing scope changes, schedule, budget, quality and communication must be in place and understood by all stakeholders. And then it is followed by conduct procurement in which advertisement in newspapers, trade journals, or web to let other parties know that the requests are being sought. Various tools and techniques are used for conducting procurements.