December 1998
PM217: PROJECT MANAGEMENT

QUESTION 5

Total Marks: 20 Marks

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SUGGESTED SOLUTIONS
for Question 5

5. (a) Outsourcing – the use of people from outside an organisation to carry out some aspect of the organisation’s business – has become very popular, and can take several different forms. Explain carefully what is involved in each of three forms of outsourcing listed below, give one advantage and one disadvantage of adopting this form, and one example of a business areas in which it is commonly used.
(i)  Use of consultants. [6]
(ii)  Use of personal services contracts. [6]
(iii) Use of suppliers of parts and material.

 

[6]
(b) Give two examples of areas where outsourcing has been popular for several decades. [2]