Lecture Ch 12 - Information Technology Project Information...

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Note: See the text itself for full citations. Information Technology Project Information Technology Project Management, Sixth Edition Management, Sixth Edition
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Copyright 2009 Understand the importance of project procurement management and the increasing use of outsourcing for information technology projects Describe the work involved in planning procurements for projects, including determining the proper type of contract to use and preparing a procurement management plan, statement of work, source selection criteria, and make-or-buy analysis Discuss what is involved in conducting procurements and strategies for obtaining seller responses, selecting sellers, and awarding contracts Information Technology Project Management, Sixth Edition 2
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Copyright 2009 Understand the process of administering procurements by managing procurement relationships and monitoring contract performance Describe the process of closing procurements Discuss types of software available to assist in project procurement management Information Technology Project Management, Sixth Edition 3
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Copyright 2009 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 People continue to debate whether offshore outsourcing helps their own country or not Information Technology Project Management, Sixth Edition 4
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Copyright 2009 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 Information Technology Project Management, Sixth Edition 5
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Copyright 2009 Application development is the most popular form of IT outsourcing and was used by 53 percent of organizations surveyed The IT function with the largest percentage of work outsourced is disaster recovery services, accounting for 50 percent of total IT outsourcing Even though application development and maintenance are frequently outsourced, they are a low percentage of the amount of total IT work outsourced Information Technology Project Management, Sixth Edition 6
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Copyright 2009 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 Information Technology Project Management, Sixth Edition 7
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Copyright 2009 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
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