ITPM Chapter 12 Complete Questions with 100% Correct Answers
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Course
ITPM
Institution
ITPM
ITPM Chapter 12 Complete Questions with 100% Correct Answers
Many private companies use the term procurement instead of purchasing.
False
The cost savings and use of offshore resources lower inflation, increase productivity, and lower interest rates.
True
Most people view offshore outs...
ITPM Chapter 12 Complete Questions with
100% Correct Answers
Many private companies use the term procurement instead of purchasing.
False
The cost savings and use of offshore resources lower inflation, increase productivity, and lower
interest rates.
True
Most people view offshore outsourcing as being good.
False
Many companies are realizing that they can use offshore outsourcing and create more jobs at home.
True
Few organizations use some form of outsourcing to meet their information technology needs.
False
According to a 2008 report on IT outsourceing trends in the U.S. and Canada, application
development is the least popular form of IT outsourcing and was used by only 25 percent of
organizations surveyed.
False
When an organization outsources work, it often does not have as much control over those aspects of
projects that suppliers carry out.
True
The success of many information technology projects that use outside resources is often due to good
project cost management.
False
If there is no need to buy any products or services from outside the organization, then there is no
need to perform any of the other procurement management processes.
True
It is always less effective to hire skilled consultants to perform specific tasks for a short period of time
than to hire or keep employees on staff full time.
False
Make-or-buy analysis involves estimating the internal costs of providing a product or service and
comparing that estimate to the cost of outsourcing.
True
Experts outside the company, including potential suppliers themselves, cannot provide expert
judgment.
,False
The buyer absorbs less of the risk with cost-reimbursable contracts than they do with fixed-price
contracts.
False
The total value of the contract is a function of the quantities needed to complete the work.
True
Any type of contract should include specific clauses that take into account issues unique to the
project.
True
Some termination clauses state that the buyer can terminate a contract for any reason and give the
supplier only 24 hours' notice.
True
Contents of the procurement management plan will vary with project needs.
True
Lead times for purchases and acquisitions should not be included in a procurement management
plan.
False
It is important to use appropriate words in a contract SOW such as may instead of must.
False
A contract SOW should not specify the location of the work.
False
The main sections of an RFP never include the statement of work and schedule information.
False
A key factor in evaluating bids, particularly for projects involving information technology, is the past
performance record of the bidder.
True
Experts in source selection recommend that technical criteria should be given more weight than
management or cost criteria.
False
It is customary to have contract negotiations during the source selection process.
True
, The term "e-procurement" often describes various procurement functions that are now done
electronically.
True
An October 2005 Information Technology Association of America (ITAA)-sponsored report stated that
spending for global sources of computer software and services is expected to grow at a compound
annual rate of about ____ percent.
a. 10
c. 30
b. 20
d. 40
20
An October 2005 Information Technology Association of America (ITAA)-sponsored report stated that
total savings from offshore resources during the 2005-2010 period are estimated to grow from $8.7
billion to ____.
a. $10.2 billion
c. $50.4 billion
b. $20.4 billion
d. $107.9 billion
$20.4 billion
"Outsourcing suppliers are often able to use economies of scale that may not be available to the client
alone, especially for hardware and software." refers to the ____ benefit of outsourcing.
a. Reduce both fixed and recurrent costs
b. Allow the client organization to focus on its core business
c. Access skills and technologies
d. Provide flexibility
Reduce both fixed and recurrent costs
"Most organizations are not in business to provide information technology services, yet many have
spent valuable time and resources on information technology functions when they should have
focused on core competencies such as marketing, customer service, and new product design." refers
to the ____ benefit of outsourcing.
a. Reduce both fixed and recurrent costs
b. Provide flexibility
c. Access skills and technologies
d. Allow the client organization to focus on its core business
Allow the client organization to focus on its core business
"Organizations can gain access to specific skills and technologies when they are required by using
outside resources." refers to the ____ benefit of outsourcing.
a. Reduce both fixed and recurrent costs
b. Provide flexibility
c. Access skills and technologies
d. Allow the client organization to focus on its core business
Access skills and technologies
"Outsourcing to provide extra staff during periods of peak workloads can be much more economical
than trying to staff entire projects with internal resources." refers to the ____ benefit.
a. Reduce both fixed and recurrent costs
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