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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Outsourcing
There are four types of outsourcing
Total
Ad hoc
Partial
Project management
I am unable to understand the project management outsourcing? What is that and how it is different to ad-hoc outsourcing.
Can you help me tutor?
There are many categorisations of outsourcing and this means that you are unlikely to be examined on this relatively arbitrary approach.
However, the difference between ad hoc and project management outsourcing is:
Ad hoc: something of an emergency situation eg your accounting department staff come down with Covid and you have to produce the accounts quickly. You might outsource their production to a firm of accountants.
Project management: you have a deliberate plan eg to change your IT system and don’t have the expertise or staff numbers to do this. Therefore, you plan to have the whole project is outsourced.
Outsourcing is very useful for business development.
Not just development – Apple outsources much of the construction of its devices
Not just development – Apple outsources much of the construction of its devices
