Which of the following factors should be considered in a make-or-buy decision?
A) prevailing public opinion regarding the economic impact of outsourcing
B) only the direct costs associated with the decision, excluding consideration of indirect costs
C) advantages and disadvantages of outsourcing in terms of time, cost and performance control
D) project manager's or sponsor's preference

Question

Which of the following factors should be considered in a make-or-buy decision?​ 
A) prevailing public opinion regarding the economic impact of outsourcing 
B) only the direct costs associated with the decision, excluding consideration of indirect costs 
C) advantages and disadvantages of outsourcing in terms of time, cost and performance control 
D) project manager's or sponsor's preference

Quizplus · Accepted Answer

To make an informed make-or-buy decision, it is essential to consider all the advantages and disadvantages of outsourcing, which include time, cost, and performance control. This will help in comparing the benefits of making a product or service in-house versus the benefits of outsourcing it to a third-party provider. Factors like prevailing public opinion or project manager's/sponsor's preference may bias the decision and should not be the sole basis for decision-making. Direct costs and indirect costs should also be considered. However, focusing only on direct costs could lead to underestimating the overall cost of outsourcing or making a product/service in-house.

Which of the Following Factors Should Be Considered in a Make-Or-Buy