Outsourcing Project Management: Some Pros and Cons
Project management outsourcing, particularly on the information technology front, has been a growing industry for some time. Outside vendors influence an assortment of expertise, and for the client having accomplished engineers and development employees when producing a new software application or upholding an existing one is literally worth its weight in gold.
One of the most common features of botched projects is insufficient project management, and this is particularly true with regard to outsourced teams, where communication risks are very high. Therefore, the question of whether to handle the team by using in-house resources, or outsource project management to the team clearly arises. Over the years, it has been revealed that managing team on the side of outsourcing provider proves effective for the provider as well as the client.
Here are some of the advantages and disadvantages of project management.
Advantages of Outsourcing Project Management
One of the major benefits of constricting project management outsourcing services is experience. Companies providing elevated IT services bring to the table best practices over numerous clients and industries. One way to review it is to envisage if your in-house project manager had the chance to share best practices with what s/he is engaged with your company with similar corporations, industry-wide, on a regular basis. This is honestly impossible as: a) the time just doesn’t allow; b) companies usually are not keen to share information with future competitors.
This is not to suggest that an outsourced project manager would begin working and share the business secrets of a likely competitor. Disclosure contracts protect against this, and in most cases, it’s unlawful. But what outsourcing providers will do, the wise ones at least, is influence the general best practices of the project manager to get the most out of that individual and the contracted company’s joint experience.
Undoubtedly, one of the most trying things to do at any level of a company is to detach oneself from a project, team or general culture, and take an impartial, external look back in. Personal benefits, relationships, office politics, etc., mess up this exercise, which renders it in most cases impossible.
Outsourced project managers come with an idea and direction that resolutely center on developing and advancing the venture to the best of their competences, and that of the company contracting them. Their emphasis is methodical and management-centric, and the “noise” that usually pervades from employees steeped in their own corporate culture does not matter in their decision-making. Objectivity is a welcome relief to most managers, particularly those looking to advance a project as quickly and competently as possible.
Cost is one of the major benefits of outsourcing project management. Having in-house resources devoted to dealing everyday operations of a completely geographically discrete team is a possible cost to the company in and of itself. By using outsourced project management services, organizations shift all the risks with regard to routine management of the team to the team itself. The internal project manager effectively handles things like scheduling, preparation, task assignment, deliverable control.
Furthermore, shifting internal resources from one project to another can be particularly expensive to a company if they are not completely sure the action will be a beneficial one. Cost in this context should be realized over the long term. It will generally be less expensive for a company to contract out services that an outsourced provider is more accomplished in managing and providing.
Disadvantages of Outsourcing Project Management
While the pros do outweigh the cons, it would not be wrong to mention the common drawbacks that come up with outsourcing project management.
Irrespective of the industry, unique company values are omnipresent. This is not to suggest that all company cultures are equally entrenched. Some are enormously powerful while others are more inert. However, within the pros and cons of outsourcing project management, one of the major cons that organizations will refer to is being able to find development teams with capacity to effectively blend into a company ethos that is formerly unknown.
Thus, in order to make this integration procedure as quick and even as possible, substantial efforts are needed from an outsourcing company in the early period to begin effective communication and acquaint the team with company culture at hand.
2. Vendor Reliance
Vendor dependency is a notion that a long time ago was a real apprehension for companies when bringing in outside parties to work together and take on vital services. The concern arises from a vendor being so capable and highly effective that the company would have no choice moving forward than to rely on them for all similar such services. While in theory this sounds like something that could be possibly incapacitating for a firm, the concept of competitive benefit exists for a reason and those firms that identify how outsourced models, functions and policy can co-exist and add value to their operation are companies that will maintain an enduring leg-up.
Furthermore, vendor reliance if it is connected to key competitive returns is not a dependency issue at all. If a company identifies that they can rely on a valued, experienced outsourcing service that comprehends the company culture and integrates flawlessly with their respective teams, that is smart business, not reliance.
To conclude, it can be rightly said that outsourcing IT project management have a number of benefits, but only if the right organization is chosen. Experience is key in this realm and while we identify there are always obstacles to overcome, it’s expected that the aforementioned list of pros and cons can help an organization make the right decision for the next project.