2.3.1: Planning for Outsourcing

Introduction to Milestone 1: Planning for Outsourcing

Every successful outsourcing engagement begins long before a contract is signed or a vendor is selected. It begins with a question: What are we trying to accomplish—and what’s the smartest way to get there? This milestone invites you to answer that question by stepping into the role of a project leader tasked with planning an outsourcing strategy for a high-impact initiative.

In this practicum, you’ve just been assigned to help C-Bay Inc. navigate a major resourcing challenge. Their IT department is in the midst of a massive expansion, yet they are already overwhelmed with maintenance demands. A critical project—Reckon—has stalled. To get it back on track, the Director of IT is asking for your help to assess whether outsourcing could be a viable solution. But outsourcing isn’t a shortcut. It is a strategic decision that requires careful evaluation of internal constraints, external opportunities, contractual structure, supplier fit, and risk exposure.

This milestone is where you develop that strategy.

You will begin by analyzing C-Bay’s current position using a SWOT framework to determine whether outsourcing is justified. You’ll then break down the Reckon project into components, deciding what should be handled internally versus externally. From there, you’ll evaluate contract models, develop a supplier selection plan, and build a risk register that reflects the realities of offshoring in today’s complex business landscape.

Throughout this process, you’ll apply real tools—make-or-buy analysis, procurement planning worksheets, and contract evaluation tables—while practicing real leadership behaviors: facilitating team decision-making, presenting clear justifications, and anticipating stakeholder concerns. You will not be told what to do. You must design a plan that makes sense—and defend it with clarity and confidence.

The goal of Milestone 1 is not to produce a perfect answer, but to engage in professional-level planning that mirrors what managers and consultants are asked to do every day: solve for ambiguity, make hard tradeoffs, and deliver a recommendation that moves the organization forward.

This is your first step in becoming that kind of leader. Let’s begin.

Introduction and Orientation

Before any contract is signed, before any vendor is evaluated, and before a single dollar is spent—there must be a plan.

Welcome to your first milestone in this practicum: Planning for Outsourcing. In this stage, you will step into the role of a project leader preparing to decide what should (and should not) be outsourced within a larger organizational initiative. You’ll be given a scenario that mirrors real-world complexity—ambitious goals, limited internal resources, tight timelines, and competing priorities. Your job is to bring structure to that ambiguity and prepare your organization for an informed, disciplined outsourcing decision.

This milestone is not about choosing a vendor. It’s about asking—and answering—the most critical strategic questions before the procurement process even begins:

• What work should we keep in-house?
• What should we consider handing off?
• What risks, dependencies, and constraints must we account for?
• And what does success look like when we don’t own the work directly?

What You’ll Do in This Milestone

You will receive an Outsourcing Brief, which lays out a realistic business scenario involving competing internal demands and unclear boundaries. Based on this challenge, your team will:

1. Analyze what work might be suitable for outsourcing
2. Apply structured frameworks like make-or-buy analysis and outsourcing decision trees
3. Use project management principles (e.g., PMBOK sourcing strategies) to assess risk, cost, and complexity
4. Build an initial Procurement Strategy Plan and Make-or-Buy Worksheet
5. Reflect on your approach, tradeoffs, and decision-making process

This milestone provides the thinking framework for everything that comes after. Just like in real project work, a weak planning phase leads to downstream confusion, cost overruns, and missed opportunities. A strong one builds confidence, alignment, and clarity—for you, your team, and your future vendor.

What You’ll Use

To support your work, you’ll receive:

• A Procurement Planning Worksheet to guide your decision-making
• A Make-or-Buy Analysis Template for visualizing tradeoffs
• Learning resources on sourcing strategies, stakeholder alignment, and PM frameworks
• Examples of common pitfalls and how to avoid them
• A detailed rubric so you know how your work will be evaluated
• A checklist to ensure your submission is complete and professional

Optional: Quizzes or Canvas-based knowledge checks may be assigned to reinforce concepts.

How You’ll Be Graded

Your performance in this milestone will be evaluated not just on the correctness of your analysis, but on:

• Clarity of thinking
• Strategic alignment with the scenario
• Use of tools and frameworks
• Professionalism of deliverables
• Depth of reflection in your post-analysis

The rubric is designed to reward rigor, structure, and thoughtful decision-making, not perfection. You’re not expected to get everything “right”—you’re expected to think like a project professional.

Why This Matters

Planning is where leaders are made. It’s where assumptions are challenged, blind spots are surfaced, and priorities are clarified. In the real world, strong outsourcing decisions don’t start with vendor names. They start with hard questions and honest answers.

This milestone is your chance to practice asking those questions. Your deliverables will shape how your organization approaches vendors, scopes work, mitigates risk, and defines success in every milestone that follows