ITPEC IP April 2021 Question 93

Monitoring the progress of development to find and resolve problems early — outsourcing the work does not outsource the orderer's responsibility for the result.

The ordering company still owns the requirements, the schedule and the acceptance of the system. It agrees milestones and deliverables with the outsourcee, checks progress reports and holds regular reviews, and acts on delays or issues while they are still cheap to fix. It manages through the outsourcee's own management, not around it.

Answer (b)

Why not others:

• •(a) — the acceptance test is how the orderer confirms that the delivered system meets the contract; it is not simplified because the outsourcee is trusted
• •(c) — the specifications of the business processes are decided by the orderer, who owns the business; an outsourcee familiar with it can advise, but cannot take the decisions
• •(d) — instructing each of the outsourcee's staff members bypasses the outsourcee's management; under a contract for work, instructions go to the contractor, and directing its workers amounts to disguised worker dispatch

Key rule: When outsourcing, keep what only the orderer can own (business requirements, progress oversight, acceptance) and leave how the work is done to the outsourcee.

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