When identifying outsourcing risks, organizations should conduct a total cost of ownership analysis on the project, and only if time permits a sensitivity analysis.

Question

Quizplus · Accepted Answer

Conducting both a total cost of ownership analysis and a sensitivity analysis is crucial for identifying outsourcing risks, not just if time permits. Sensitivity analysis helps understand how changes in key assumptions impact the project, which is essential for risk management.

When Identifying Outsourcing Risks, Organizations Should Conduct a Total Cost