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BIMF.EN · Question #39

What is not an activity of the process Contract management?

The correct answer is B. choosing whether to outsource certain kinds of services. Option B is correct because deciding whether to outsource a service is a strategic sourcing decision made before Contract Management begins - it belongs to IT Strategy or Supplier Strategy, not to the day-to-day management of contracts. Option A is wrong because negotiating and…

Management & Organization

Question

What is not an activity of the process Contract management?

Options

  • Amaking agreements with IT service providers regarding time, costs, capacity and content of the
  • Bchoosing whether to outsource certain kinds of services
  • Cagreeing the method of communication between customer and IT service provider

How the community answered

(34 responses)
  • A
    9% (3)
  • B
    71% (24)
  • C
    21% (7)

Explanation

Option B is correct because deciding whether to outsource a service is a strategic sourcing decision made before Contract Management begins - it belongs to IT Strategy or Supplier Strategy, not to the day-to-day management of contracts.

Option A is wrong because negotiating and agreeing on time, costs, capacity, and service content with IT providers is a core Contract Management activity - it defines the terms of the contract itself.

Option C is wrong because establishing communication protocols between the customer and provider is part of managing the contractual relationship, ensuring both parties interact effectively within the agreement.

Memory tip: Think of Contract Management as everything after the outsourcing decision is made. If the activity could appear in a contract document or govern an existing supplier relationship, it belongs in Contract Management. "Should we outsource?" is a board-level strategy question - not a contract clause.

Topics

#Contract management#outsourcing decision#IT service provider#activities

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