A sourcing strategy plan template is the project management plan component that documents which elements of the project will be insourced, outsourced, or a combination of both, along with the rationale and approach for acquiring each external deliverable. According to the Project Management Institute (PMI), the sourcing strategy plan is a key output of the Plan Sourcing Strategy process in the Governance Performance Domain of PMBOK 8. It establishes a clear framework for acquiring project deliverables — defining what to acquire, how to acquire it, and when to acquire it — and feeds directly into procurement management, contract selection, and vendor management activities.

What is a Sourcing Strategy Plan?

In PMBOK 8, the sourcing strategy plan is a component of the project management plan that describes which elements of the project will be insourced, outsourced, or both. The sourcing strategy should contain the rationale for a given approach, based on the desired impact to project value, schedule, risk, finances, or other considerations. A sourcing strategy can be formal or informal, highly detailed or broadly framed, and is based upon the needs of each project. The plan may or may not include the details of how outsourced procurement should be performed. The components of the sourcing strategy plan may include insourcing or outsourcing decisions, and source selection criteria that will be used to evaluate and select vendors. The Plan Sourcing Strategy process uses inputs including the scope baseline, resource requirements, risk register, and stakeholder register to determine whether work or deliverables can be better accomplished using internal sources or should be purchased from outside sources.

What's Included in This Sourcing Strategy Plan Template?

• Scope of Sourcing Decisions - A list of all project deliverables, work packages, or components evaluated for make-or-buy analysis, with the decision (insource, outsource, or hybrid) recorded for each item.
• Make-or-Buy Rationale - The documented reasoning behind each sourcing decision, referencing the key factors considered: cost, schedule impact, risk profile, organizational capability, intellectual property, and strategic importance.
• Source Selection Criteria - The evaluation criteria that will be used to assess, score, and select vendors for outsourced components, including technical capability, experience, price, risk, and compliance requirements.
• Contract Type Selection - For each outsourced item, the type of contract to be used (fixed price, cost reimbursable, time and materials) and the rationale for that selection given the project's risk profile and deliverable certainty.
• Procurement Constraints and Assumptions - Legal, regulatory, organizational, or market constraints that affect sourcing options, along with assumptions made about vendor availability, pricing, and lead times.
• Roles and Responsibilities - The team members or departments responsible for executing each procurement action, including approvals required and the escalation path for sourcing decisions above the project manager's authority.
• Sourcing Timeline - Key milestones for procurement activities including RFQ/RFP issue dates, vendor selection deadlines, contract execution dates, and delivery schedules aligned with the project schedule.

How to Use This Sourcing Strategy Plan Template (PMBOK 8)

1. Complete make-or-buy analysis before creating the plan - The sourcing strategy plan documents the outputs of make-or-buy analysis. Conduct the analysis systematically, considering both quantitative factors (cost comparison) and qualitative factors (risk, capability, strategic fit) before recording decisions.
2. Align sourcing decisions with resource requirements - When resource requirements show that internal capacity is insufficient, those gaps should be reflected as outsourcing decisions in the sourcing strategy plan with the corresponding procurement approach.
3. Select contract types that match risk allocation intent - Fixed-price contracts transfer cost risk to the vendor and are appropriate when scope is well-defined. Cost-reimbursable contracts retain cost risk with the buyer and are appropriate for uncertain or evolving scope. Document the reasoning for each contract type selected.
4. Define source selection criteria before issuing solicitations - Criteria must be established before reviewing proposals to ensure objectivity. Changes to criteria after proposals are received undermine the integrity of the selection process.
5. Review the sourcing strategy plan at phase gates - Sourcing decisions made during planning may need to be revisited as the project advances. Changes in scope, schedule, risk, or market conditions can invalidate earlier make-or-buy decisions.
6. Integrate the sourcing strategy with risk management - Each outsourcing decision introduces procurement-related risks (vendor performance, cost overruns, delivery delays) that should be logged in the risk register with appropriate response strategies.

When to Create This Document (PMBOK 8)

The sourcing strategy plan is created as an output of the Plan Sourcing Strategy process, which is part of the Planning Focus Area in PMBOK 8. This process is typically performed early in planning, after the scope baseline and resource requirements are established but before procurement actions begin. The sourcing strategy plan should be completed before any solicitations are issued to vendors, ensuring that all sourcing decisions are deliberate, documented, and aligned with the overall project management plan.

Related Templates

• Scope Baseline Template
• Resource Requirements Template
• Request for Quotation Template
• Risk Management Plan Template
• Stakeholder Register Template

Complete Guide & Filled-In Example

Get the most out of this template with the two companion resources below:

• Sourcing Strategy Plan in PMBOK 8 - Complete Guide - Understand the purpose, key elements, and best practices before filling in the template.
• Download the Filled-In Example - Project Phoenix - See exactly how this document was completed for a real $72K website launch project.