Question

A project requires a specialized data-encryption module. The internal team has some capability but is fully committed to core deliverables for the next two quarters. The sponsor asks the project manager whether the module should be built in-house or acquired from an external vendor. What should the project manager do FIRST to inform this recommendation?

Accepted Answer

Perform a make-or-buy analysis comparing internal and external costs, capacity, and risks

Answer

Issue a request for proposal (RFP) to prospective vendors to gather pricing

Answer

Reassign internal developers from core deliverables to build the module

Answer

Select a fixed-price contract to transfer delivery risk to a vendor