ACCA PM Syllabus C. Decision-making Techniques - Outsourcing - Notes ^{1 / 3}

This is contracting out aspects of the work of the organisation, previously done in house, to specialist providers.

Business process outsourcing (BPO) is a subset of outsourcing and involves the contracting out of specific business functions such as IT or HR.

Matters to be considered:

1. The Quality of the outside producer must be acceptable

2. Continuity of supply must be guaranteed

3. Can the extra capacity freed up generate additional profits?

4. Will labour morale will be adversely affected?