1. Chapter 12 Project Procurement Management & Outsourcing Copyright 2012 John Wiley & Sons, Inc. 12-1

2. Outsourcing 12-2

3. The Outsourcing Phenomenon 12-3

4. Debates on Outsourcing 4

5. Why Outsource? 5

6. PM Network – Risks of Outsourcing Boeing’s Dreamliner Following suit and not minding risks Vendor Issues  Misunderstanding  Information Exchange  Schedule Overruns 6

7. Types of Outsourcing Relationships Business Process Outsourcing Offshoring 12-7

8. Approaches to Outsourcing Just as an organization can pursue outsourcing as a strategic approach, so too can a project manager and team in terms of 12-8

9. Outsourcing Model 12-9

10. Realities of Outsourcing Before the Kodak deal, outsourcing was not a controversial topic, especially by IT professionals Controversy centers on offshoring, or the perception that jobs within one country are replaced by lower-wage jobs in another  Many believe that domestic unemployment increases and negatively impacts the economy 12-10

11. Realities of Outsourcing 12-11

12. 7 Deadly Sins of Outsourcing Activities and Projects 12-12