Which of the following responsibilities should be retained within an enterprise when outsourcing a project management office (PMO) function?

Project selection is a strategic decision that directly ties to the enterprise's strategic goals, resource allocation, and risk appetite. Retaining this responsibility ensures that projects undertaken, even if managed externally, are fundamentally aligned with the organization's strategic direction and deliver maximum business value. Outsourcing project selection would compromise the enterprise's control over its strategic investment portfolio.

Managing projects (e.g., day-to-day coordination, scheduling) is a core operational function that can often be effectively outsourced to a PMO, provided clear governance and oversight are in place.

Tracking project cost is an operational monitoring activity that can be outsourced to a PMO, with reporting and oversight retained by the internal finance or governance teams.

Defining project methodology (e.g., Agile, Waterfall) is a process-oriented function that can be established or influenced by an outsourced PMO, often bringing best practices, as long as it fits the enterprise's needs.