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1. (TCO 1 & 4) What would facilitate a business process outsourcing transition quickly and maintain some consistency in the organization?

allow the outsourced firm autonomy to create its own policies and procedures with no regard for the project's goals

quickly lay off all employees

retain key employees through transition

sidestep the RFP process because it takes too long

2. (TCO 4) Under this pricing contract, the buyer pays the seller's actual costs and a fixed fee determined as a percentage of the estimated project costs.

CPFF

CPF

CBF

CPIF

3. (TCO 7) Which step(s) should a buyer take to evaluate the seller's proposal?

Establish a scoring system

Weigh each evaluation criterion

Select key evaluation criteria

All of the above

4. (TCO 5) Negotiations in a BPO agreement are largely determined by which factor?

The underlying objectives of each of the parties

The scope of services being outsourced

The relative bargaining positions of the parties

All of the above are factors that determine negotiations

5. (TCO 6) Employee morale and expectations, buyer's precedent, service level desired by the buyer, and the efficient delivery of services by the seller are all _____.

reasons affecting the human resource transfer decision

reasons to outsource human resources

reasons to maintain the business process in-house

reasons to exclude offshoring contractors from bidding on an RFP

6. (TCO 3) Which is not a key component in the project procurement management process?

Select sellers

Plan contracting

Request for proposal

Plan purchases and acquisitions

7. (TCO 6) What are some steps to take when communicating with employees that outsourcing will take place in the company?
8. (TCO 2 & 6) What typically gets outsourced and what would be the benefits to outsourcing the items listed? Please list and discuss six reasons.

9. (TCO 9) What happens after a renegotiation? Why does this happen?

10. (TCO 8 & 9) What is benchmarking? Give two examples with which you are familiar, and tell why benchmarking is useful in outsourcing.

Page 2

1. (TCO 8) What is a performance standard and how is this agreed upon? Recommend the components that would need to be included and why.

2. (TCO 5) What laws should an organization consult before, during, and after a BPO? Describe two of the laws and how you would include this in a presentation to executives.

3. (TCO 5 & 7) List and describe five components of a BPO. Then summarize why each of the items that you chose are important to the BPO process.

4. (TCO 2 & 5) Describe in detail how the negotiation process works when this process is done correctly. Then convince the executive team that the legal team has to be represented in the negotiation process.

5. (TCO 8 & 10) What is early termination? Give an example and then discuss how can this be avoided or minimized. Persuade the legal team that the verbiage to accomplish this needs to be included in the BPO agreement.

6. (TCO 5 & 6) What are some considerations when a company will be transferring employees to the outsourcer? Anticipate issues that will be brought up by the employees and the responses that the company will provide.

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