Your company decides to sell toys online and ships globally. An in-house team is responsible for developing the online shopping website, while an external software vendor will subcontract some modules. The management is concerned about the vendor’s software development capability. If the modules are outsourced as a project, which of the following vendor selection criteria best addresses the management’s concern?
A. Projects are well-organized, executed, and repeatedly delivering results
B. Projects are managed proactively based on customizable organization-wide approaches
C. Projects are led by experienced, well-trained, and certified project managers.
D. Projects are awarded to a vendor with strong customer references and word of mouth
Kindly be reminded that the suggested answer is for your reference only. It doesn’t matter whether you have the right or wrong answer. What really matters is your reasoning process and justifications.
My suggested answer is B. Projects are managed proactively based on customizable organization-wide approaches.
All four options are common vendor selection criteria. However, the management typically needs assurance, so CMMI provides a useful reference framework to consider in this question.
- A vendor, capable of managing projects proactively based on organization-wide approach or standard customizable or tailorable to project-specific needs, can be objectively assessed in terms of CMMI Level 3 (Defined) and provide higher assurance than customer references and word of mouth.
- A project fails if it cannot deliver results. A project can be well-organized and executed with various approaches and deliver different or unstable levels of quality. It may be compliant with CMMI Level 2 (Managed) if projects are well-organized, executed, and repeatedly delivering results. If projects are compliant with the organization-wide approach or standard, the project deliverables and quality can be assured.
- The project manager is a concern at the project level or CMMI Level 2.
- Strong customer references and word of mouth are common criteria to select vendors. However, they are evaluated based on a subjective or qualitative approach. They can be optional or nice-to-have requirements in the bidding documents.