ch12 - Chapter12: ProjectProcurementManagement

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Chapter 12: Project Procurement Management Information Technology Project Management, Fourth Edition
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2 Information Technology Project Management, Fourth Edition Learning Objectives Understand the importance of project procurement management and the increasing use of outsourcing for information technology projects. Describe the work involved in planning purchases and acquisitions for projects, the contents of a procurement management plan and contract statement of work, and calculations involved in a make-or-buy analysis. Discuss what is involved in planning contracting, including the creation of various procurement documents and evaluation criteria for sellers.
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3 Information Technology Project Management, Fourth Edition Learning Objectives (cont’d) Understand the process of requesting seller responses and the difference between proposals and bids. Describe the seller selection process and recognize different approaches for evaluating proposals or selecting suppliers. Discuss the importance of good contract administration. Describe the contract closure process. Discuss types of software available to assist in project procurement management.
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4 Information Technology Project Management, Fourth Edition Importance of Project Procurement  Management Procurement means acquiring goods and/or services from an outside source. Other terms include purchasing and outsourcing. Experts predict that global spending on computer software and services will continue to grow. India is the leading country for U.S. offshore outsourcing.
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5 Information Technology Project Management, Fourth Edition Debates on Outsourcing Some companies, such as Wal-Mart, prefer to do no outsourcing at all, while others do a lot of outsourcing. Most organizations do some form of outsourcing to meet their IT needs and spend most money within their own country. The U.S. temporary workforce continues to grow as people work for temporary job agencies so they can more easily move from company to company.
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6 Information Technology Project Management, Fourth Edition Why Outsource? To reduce both fixed and recurrent costs. To allow the client organization to focus on its core business. To access skills and technologies. To provide flexibility. To increase accountability.
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Information Technology Project Management, Fourth Edition Contracts A contract is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them. Contracts can clarify responsibilities and sharpen focus on key deliverables of a project. Because contracts are legally binding, there is more accountability for delivering the work as stated in the contract. A recent trend in outsourcing is the increasing size of
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This note was uploaded on 12/17/2010 for the course TECHNOLOGY CSC420 taught by Professor Na during the Spring '10 term at Sullivan.

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ch12 - Chapter12: ProjectProcurementManagement

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