Project Management is the use of strategies, process cycles, abilities, experience and information to accomplish the explicit tasks as indicated by the project agreements from both parties. The board expects the projects to be completed within the given timescale and the financial plan by the project managers.
A key differentiating factor between management and project management, from the viewpoint of administration, is that project management has a deliverable and a limited period while management is a never-ending process. Due to this factor, project managers must have a variety of skills such as management, business awareness and even technical skills to have a stronghold on the business.
With the different trends and opportunities coming up with each passing day, one of the most common trends these days is to outsource the project management tasks. Rather than hiring project managers, companies are outsourcing their project management tasks. There are various benefits behind it which will be shared in the next section.
Project Management Outsourcing
In the last few years outsourcing has been common in the IT industry, a major chunk of it has been project-based. In such projects, management has been an essential part and was incorporated as a feature for the seller or the organization. Project Management has received significance from customers and organizations. Before signing agreements, the customers tend to focus on project management and emphasis on it. For some people, it is obvious that project management services will be provided. For instance, if you outsource a software development task, it is understood that the project management would be taken care of as well.
Why should you consider Project Management Outsourcing?
There are various reasons which you might want to check out before considering outsourcing the project management tasks. These include:
1) Low staffing levels.
Considering the size of your organization, you might not have adequate staff to set up and initiate the tasks dealt with by the Project Management board Office. Many organizations just don’t have sufficient employees to commit at least one or more workers to completely look after the projects. Often the employees are overburdened by their daily task so less time is left for the look after of projects.
2) Inexperienced staff
Regardless of whether you have a little, midmarket or huge organization, your staff might not have the particular skills and experience required for the management of a project and taking the project towards successful completion. Since, the whole idea of pitching a project, gathering the requirements, setting the deadlines and completing the deliverables on time and within the budget might turn out to be a tricky task. For this, you would need a professional project manager to boost your business.
3) Limited Budget
A limited budget can be a progressing worry for organizations since it offers them less capacity to work and grow. As the budget lessens and the competition in the market grows, the organizations frequently battle to track down the money to finance projects. Finding extra resources to enlist dedicated staff, purchase materials and pay high scale employees can be troublesome, particularly when those finances are reserved especially for the project tasks. To avoid such situations, organizations prefer outsourcing project management tasks.
4) Business Model
Every company has a business model which it must follow religiously. If you decide to outsource your tasks, then you must first analyze your business model. If your project management tasks require internal work, then it is useless to hire someone. It will be a huge burden on the organization to train, hire and educate the individual. It is better to ask an employee to manage the internal work.
Advantages of Project Management Outsourcing
We should expect briefly that one of the elements referenced above or even every one of them was the motivation behind why you choose to outsource your project management task. Initially, it does make sense if you find yourself lost in the struggle of deciding on the project management firms. You won't be sure whether you have tracked down the correct person or not. Simultaneously, you might be delighted to find out that the burden of tracking and completing the project won’t be on your shoulders.
1) Lower cost
There are many employees in the organization who you think are capable of working as a project manager. You assign the task to one of them. Afterwards, other tasks come up within the organization which require more staff so you consider hiring more employees which increases the cost. However, by outsourcing them you will be paying a fixed amount to a project manager to finish the project tasks and simultaneously keep your present staff accessible for inner projects. This will save great costs for you!
2) Finding the right person
By focusing only on the company’s employees, you might miss out on the exclusive talent which might be beneficial for your organization. By outsourcing project management, you could wind up employing a genuine ability. There are plenty of project managers out there who genuinely are skilled and will want to give you brilliant services. In the era of technology, the Internet world permits us to employ individuals from across the globe. At the end of the day, you could employ somebody who can give you astounding management while being in another part of the world. You will in any case be making use of their skills and experience and this must be useful for your business.
3) A Different Perspective
The project managers outside the company can see things a lot more different than the employees within. They won't attempt to pad the blow for you and give you a straightforward image of what is happening around you. If by chance, they see that your staff is not capable of finishing the task's goals or that the organization won't get high worth from the consummation of the project, they will share a clear picture. They will try to manage all business prerequisites and manage tasks on their own and give you a final product
Therefore, outsourcing the project management tasks prove to be beneficial for the company in the long run!