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The Benefits of Outsourcing Project Management

20 Apr 2022

What is Project Management? 

Project management is the use of skills, processes, methods, knowledge, and experience to meet objectives within agreed-upon parameters while adhering to project criteria. Final outputs are bound by a finite timeframe and budget in project management. A significant aspect of project management that distinguishes it from just ‘management’ is that it has a final outcome and a fixed timeframe. As a result, a project manager needs a diverse set of skills, including technical expertise, as well as people management and business acumen.  

Project Management Outsourcing 

The majority of outsourcing in the past has been in the IT sector, with a big portion of it being for project-based work. For these projects, project management was an important component that was included in the vendor’s or service provider’s scope of work. Clients and service providers place a great deal of emphasis on project management. Many clients use project management abilities as a criterion for awarding contracts to providers. When a vendor is given an outsourcing assignment, such as software development, project management is considered an element of it. 

The Primary Reason for Outsourcing Project Management: Certification  

If certification is required, there is no need for a list of benefits and drawbacks; either get a certified consultant or don’t execute the job. For example, if a company is bidding on a contract, one of the requirements in the RFP (request for proposal) or tender could be that the project manager is certified. This makes sense especially when a company requests services for a huge project. 

Before assigning work to another contractor, any organization that has witnessed bad project management – and paid the related expenditures due to mismanagement and delays – frequently demands that an experienced and certified project manager be put in charge. Even if certification isn’t needed, outsourcing to someone who is certified may wind up saving you money in the long run.  

Five Reasons to Hire a Project Management Company  

Even if certification isn’t an issue, there are a number of reasons why organizations outsource project management, including the following: 

1. Increased Talent Pool: Outsourcing may be the ideal alternative if you have a staff shortage or lack an employee with management experience, especially if you don’t need a project manager for a long enough period of time to warrant a full-time appointment. 

2. Cash Flow Issues: Even if you could use a project manager in the near future, the expert’s compensation expectations may be too high for a tiny company to afford. It may be more cost-effective to outsource projects one at a time. 

3. High Level Of Skills And Experience. Even if you have a capable manager who has managed a few projects in addition to other responsibilities, independent consultants typically have far more expertise because this is all they do – and have done for many years. 

4. Objectivity: An outsourced project manager can provide a fresh viewpoint to a company, which is especially beneficial when taking on new projects. The project manager is a seasoned professional with a plethora of knowledge. 

5. Project Focus: In addition to experience and objectivity, an outsourced PM is entirely focused on the project at hand, with no extraneous organizational needs or office politics to distract them. 

Drawbacks of Outsourcing Project Management and How to Address Them 

Not everyone believes that employing an outsourced project manager to work alongside the development team can provide the same level of benefits as hiring an in-house project manager. Here are five areas of concern and suggestions to avoid them. 

1. Lack of Operational Control  

When day-to-day project activities are turned over to an outsourced project manager, there is fear that this will result in the client’s loss of control over the development process, project decisions, and, ultimately, the project’s outcome. 

Solution: Outsourced PMs should always keep customers informed about the project’s progress and consult with them on important issues (development approach, technology selection, sprint targets, and so on). This is typically accomplished by writing daily or weekly status reports, organizing regular online standups, and sending follow-up emails.  

2. Poor Quality of Final Product 

For software development, each organization has its own approach and quality requirements. It might be difficult to ensure that a contractor is adhering to those standards and that the result will meet all of the customer’s requirements when outsourcing a project. 

Solution: There should be strong internal coding standards to help the outsourcing team create high-quality products. Priority should be given to customer needs during the project discovery phase to establish the product’s goals and features. This will ensure that the finished product meets all the customer’s requirements, expectations, and requirements. 

3. Lack of Data Security and Confidentiality   

A customer may believe that transferring confidential project information to a third-party PM is insecure, and that the data is no longer secret. 

Solution: Outsourced PMs should adhere to security best practices while working on projects, such as signing non-disclosure agreements, using secure credentials to access clients’ resources, auditing the security of data forms and APIs, and so on.   

4. Lack of Involvement in the Customer’s Business  

In-house project managers are typically familiar with all aspects of a customer’s business and industry that are pertinent to the project. Outsourced PMs will require a significant amount of time to figure it all out. They may ignore industry norms, important players, and other factors if they do not thoroughly research the customer’s business. 

Solution: Partner with an outsourced PM who has extensive experience in delivering projects of varying sizes to customers from diverse industries and countries.  

5. No Regular Communication   

Outsourcing is frequently linked to communication challenges such as time zone disparities, cultural differences, language barriers, and so on. Because a PM is a primary link between the outsourced team, stakeholders, and in-house developers, difficulties interacting with them can have a negative impact on the entire project. 

Solution: Project managers must work out particular deadlines and communication methods that are convenient for both the customer and the outsourced team. They should have the flexibility and agility to work in every situation and with customers from all over the world. 

ClinkIT Solutions for Outsourced Project Management 

With 6x Gold Microsoft Partner ClinkIT Solutions as your project manager, you will find the right balance for your organization so you can focus on your core business competencies and goals. Learn more about ClinkIT Solutions project management outsourcing services

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