Adding Value By Outsourcing Project Management

April 25, 2011

Most businesses find it a challenge to apply decision making to outsourcing. This is especially true when dealing with temporary projects and tasks. It makes horse sense not to invest personnel, technology and equipment into a short term assignment.

One such example is automation of marketing functions. This is a task that can be aptly outsourced because it frees up a company from back-end technology. During the transfer of operations to the firm from the service provider or consultant firm, employees may be trained for whatever front end processes are required reports

Typically, outsourcing also comes into play when the inhouse personnel is inadequate to complete big time projects that a company undertakes. In this regard, outsourcing in an efficient manner can supplement company competencies as well. No matter what the outsourcing project is, it is becoming clear to corporations that a debate about benefits and disadvantages is a must before engaging in outsourcing.

Apart from the cost savings, outsourcing also offers a variety of benefits. It brings out a new dimension when an outside advisory firm joins your workforce. Added to this, the outsourced employee brings with him skills galore that are updated and relevant to your industry. They also give you a better understanding and a fresh perspective on a number of issues such as controlling, planning, directing and execution of projects.

There is also a better return on investment, since the outsourced employee or consultant is an expert in your field and he is hired for his expertise and to get the job done. This gives him an edge over your own employees, in terms of return on investment.

Hiring outsourced staff also gives your personnel future solutions, should the need for a similar task arise in the future. Your staff will have the experience of knowing how to engage in projects that were once new to them.


One Response to “Adding Value By Outsourcing Project Management”

  1. Francois on April 26th, 2011 4:51 am

    In my experience requires successful project execution in most cases deep knowledge of the companies’ processes and other area’s. Using staff augmentation to supplement the internal resource pool of PMs is already tricky as the business has to transfer knowledge to enable to PM to execute its project successfully. Outsourcing (part of) the project management is only relevant in my opinion when it is part of a larger contract (e.g. building a software system). In that case the vendor uses PMs to control the execution of the project.

Got something to say?