PFMP · Question #604
Your organization, given the economic downturn in your country, decided to reduce its staff by 90% and outsource all operational activities including those of program and project managers and their te
The correct answer is C. Financial standing. The correct answer is C - Financial standing. When outsourcing is the predominant model, the Procurement and Contracting manager is primarily concerned with the financial dimensions of contracts - costs, vendor payments, budget commitments, financial risks, and the organization's
Question
Your organization, given the economic downturn in your country, decided to reduce its staff by 90% and outsource all operational activities including those of program and project managers and their teams. It has, however, retained the portfolio manager, and it has a Portfolio Review Board comprised of senior executives that meets monthly. Since outsourcing is the norm and not the exception, the manager of Procurement and Contracting is a major stakeholder. Her areas of interest are:
Options
- ABenefits and outcomes toward strategic goals
- BOverall portfolio performance
- CFinancial standing
- DChange decisions
How the community answered
(34 responses)- A12% (4)
- B3% (1)
- C76% (26)
- D9% (3)
Explanation
The correct answer is C - Financial standing. When outsourcing is the predominant model, the Procurement and Contracting manager is primarily concerned with the financial dimensions of contracts - costs, vendor payments, budget commitments, financial risks, and the organization's financial health as it relates to procurement obligations. Benefits and strategic goals (A) belong to executives. Overall portfolio performance (B) belongs to the portfolio manager or PMO. Change decisions (D) fall under governance or the Portfolio Review Board. Financial standing directly maps to the procurement function's core responsibility of managing the cost and financial terms of outsourced work.
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