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Project Management Outsourcing

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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 customers projects. Project management outsourcing makes it possible to improve the effectiveness of the organizations 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 companys 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 customers 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 Experts 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 customers personnel effectively (assigning responsibility in a strictly defined manner, controlling work performance, building an integrated team)

Outsourcing vs. Other Project Management Options

Factors Contributing to Effective Project ManagementCustomers Project ManagerContractors Project ManagerPM Experts Project Manager
1Project management knowledgeNot alwaysUsually noYes
2Project management experienceNot alwaysNot alwaysYes
3Free time available for implementing the projectUsually noYesYes
4Effective management of the companys resourcesYesNoYes
5Protection of the companys interests (at a contract and tender level, when implementing projects)Not alwaysNoYes
6Usage of the project management methodologyUsually noNot alwaysYes
7Availability of the project management quality systemUsually noNot alwaysYes
8Usage of experience accumulated in the course of implementing other companies projectsNoUsually noYes
9Effective establishment of project communications (procedures, responsibility matrices, etc.)Usually noNoYes
10Project management transparency (for: management, shareholders, and partners; certifications, audits)Usually noNoYes


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