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PK0-004 · Question #134

A company decides to give a large section of its development project to another firm to manage and complete because that firm has the appropriately skilled resources to execute the work. This…

The correct answer is D. Outsourcing. Handing off a large project section to an external firm that manages and completes it using their own skilled resources is the definition of outsourcing.

Project management concepts

Question

A company decides to give a large section of its development project to another firm to manage and complete because that firm has the appropriately skilled resources to execute the work. This approach is referred to as:

Options

  • AResource leveling
  • BStaff Augmentation
  • CWork relocation
  • DOutsourcing

How the community answered

(51 responses)
  • A
    2% (1)
  • B
    2% (1)
  • C
    4% (2)
  • D
    92% (47)

Why each option

Handing off a large project section to an external firm that manages and completes it using their own skilled resources is the definition of outsourcing.

AResource leveling

Resource leveling is a scheduling technique used to resolve resource over-allocations and conflicts within a project schedule, not a method of transferring work to an external party.

BStaff Augmentation

Staff augmentation adds external contractors to work under your own management and direction, whereas outsourcing transfers management responsibility to the external firm entirely.

CWork relocation

Work relocation is not a recognized project management procurement term and does not describe transferring project delivery responsibility to an external organization.

DOutsourcingCorrect

Outsourcing involves transferring both the work and the management responsibility for a defined scope to an external organization, which uses its own resources to deliver the outcome. This is distinct from keeping the work in-house because the external firm assumes accountability for execution, not just providing labor under the buyer's direction.

Concept tested: Outsourcing as an external project procurement strategy

Topics

#outsourcing#procurement#resource management#vendor management

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