August
1999 QUESTION 4 Total Marks: 20 Marks |
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| (a) | Describe what is meant by
"outsourcing" some aspect of a business.
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[2] |
| (b) | Based on your
understanding of outsourcing, explain three possible reasons or scenarios in some detail
that could cause an organisation to use outsourcing.
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[6] |
| (c) | Two possible types of contracts in outsourcing
are : fixed-price contracts and cost-plus contracts. Describe clearly each of these types
of contracts.
|
[2] |
| (d) | For each type of contract, does the risk lie
with the organisation or with the outsourcing contractor? Justify your explanation.
|
[4] |
| (e) | Identify and briefly describe the three
possible types of cost-plus contracts.
|
[6] |