Project Management Outsourcing
Project management outsourcing is a common and proven approach used by moderately large companies to implement their project tasks. Business processes outsourcing (in particular that of the project management process) is becoming ever more popular.
Project management outsourcing (external project management) is a new and unique service in Russia, within which an external specialized company implements the activities related to managing the customer’s projects. Project management outsourcing makes it possible to improve the effectiveness of the organization’s project activities by means of the competencies, experience, and professionalism accumulated by the contractor company.
Why is Project Management Outsourcing Needed?
Project and program management currently becomes one of the key tools for accomplishing operating and strategic objectives in most of the companies not only abroad but in Russia as well. However, project implementation using the company’s own resources does not always lead to the results planned by the leadership team. Major reasons underlying possible failures include a sharp increase in the number of projects and the lack of in-house specialists who can manage projects really well.
Due to these reasons, many companies, which experience an active growth and development of project activities, find the solution actively used in world practice, namely to outsource project management to a third-party company, which is independent from the contractor engaged for the project and represents the customer’s interests specializing in professional project management.
Advantages of Project Management Outsourcing
Carrying out tenders effectively (minimizing costs, elaborating the contractors’ proposals)
Including special terms and conditions aimed at risk minimization into the contracts signed with the contractors
Using best practices, methodological approaches, and world standards (Project Management Institute (PMI)® practices, PM Expert’s proprietary methodology) when managing projects
Planning and monitoring projects in an elaborate manner (devising pessimistic and optimistic plans, controlling baselines, modeling the development of a project, controlling changes and risks)
Resolving communications problems effectively, organizing and preparing project progress reports for all management levels
Managing the customer’s personnel effectively (assigning responsibility in a strictly defined manner, controlling work performance, building an integrated team)
Outsourcing vs. Other Project Management Options
|¹||Factors Contributing to Effective Project Management||Customer’s Project Manager||Contractor’s Project Manager||PM Expert’s Project Manager|
|1||Project management knowledge||Not always||Usually no||Yes|
|2||Project management experience||Not always||Not always||Yes|
|3||Free time available for implementing the project||Usually no||Yes||Yes|
|4||Effective management of the company’s resources||Yes||No||Yes|
|5||Protection of the company’s interests (at a contract and tender level, when implementing projects)||Not always||No||Yes|
|6||Usage of the project management methodology||Usually no||Not always||Yes|
|7||Availability of the project management quality system||Usually no||Not always||Yes|
|8||Usage of experience accumulated in the course of implementing other companies’ projects||No||Usually no||Yes|
|9||Effective establishment of project communications (procedures, responsibility matrices, etc.)||Usually no||No||Yes|
|10||Project management transparency (for: management, shareholders, and partners; certifications, audits)||Usually no||No||Yes|
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