During the recession of 1989–1993, the auto industry began taking extreme cost cutting measures by downsizing its organizations. The downsizing efforts created project management problems for the project engineers in the manufacturing plants. With fewer resources available, more and more of the work had to be outsourced, primarily for services. The manufacturing plants had years of experience in negotiations for parts, but limited experience in negotiations for services. As a result, the service contracts were drastically overrun with engineering changes and schedule slippages. What is the real problem and your recommendation for a solution?