ITPEC FE Morning April 2018 Question 63

Agree a target quality level with the subcontractor and track it with quality indexes — the risk is falling quality, so the measure must make quality visible and drive improvement.

Once maintenance and operation are outsourced, the company no longer does the work itself and sees its quality only through what it measures. The usual control is to agree the required service level with the subcontractor, define indexes that show it (availability, time to resolve incidents, number of failures), review them regularly and ask for improvement when they fall short.

Answer (d)

Why not others:

• •(a) — in-house staff able to assess the service costs of maintenance and operation address cost, not quality
• •(b) — a detailed fee structure by service lets the company validate the service costs; it controls cost, not quality
• •(c) — a plan for developing the company's own staff after outsourcing addresses the loss of in-house skills, not the quality of the outsourced service

Key rule: Pair each outsourcing risk with its own control: cost with transparent fees and people able to judge them, lost skills with staff development, quality with agreed service levels measured by indexes.

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