Rom operations management department, college of business administration, cleveland state university, cleveland, ohio, usa abstract. An excellent technique for keeping control of the outsourcing process is for the customer organisation to apply firm project and process management methodologies to the outsourcing project and the resulting outsourced operation. The outsourcing handbook a guide to outsourcing deloitte. The it project management practices guide guide contains a repeatable, institutionwide approach for the management of application development andor software procurement and deployment projects. Introduction to outsourcing for the project management professional by john reynolds business globalisation, combined with the relentless change of new technology, continues to challenge our ability to adequately manage enterprise computing activities. Three tips for effectively outsourcing project management. These items are in addition to other factors that you may wish to include. The company can become better prepared for handling similar projects in the future. Done right, global outsourcing can provide significant opportunities for companies to reduce their cost base and increase both their domestic and their worldwide competitiveness. The successful implementation of outsourcing project within the manufacturing industries has lot of benefits to all party involved however, the management of such project come with huge pain and. Before making this potentially risky leap, you have to assess if this is a good move for. Change management outsourcing policy, change management collaborative offshore environment and change management factors during outsourcing are the important change outsourcing initiatives to be considered.
Cost is one of the main advantages of outsourcing project management. Outsourcing lets organizations pay for only the services they need, when they need them. Mar 20, 2017 three tips for effectively outsourcing project management. Best practices for outsourcing your project management. Finally conclusion is a logical flow of the whole project. Introduction to outsourcing for the project management professional by john reynolds business globalisation, combined with the relentless change of new technology, continues to challenge our. The article also shows how to evaluate, monitor, and manage the outsourcing relationship, speci. There are numerous companies that provide project management services. Feb 20, 2008 this section contains information on strategies for project managers dealing with outsourcing and distributed teams. The pros and cons of outsourcing project management. Pdf the increasing demand for egoverment services has created considerable challenges for public administration, not only in terms of expertise. Project management, however, is a function that organizations do not. Closely related to procurement selection from information technology project management.
External vendors leverage a range of expertise, and for the client having capable engineers and development personnel when creating a new software application or maintaining an existing one is literally worth its weight in gold. Nine benefits of outsourcing it project management cio. As your business grows, outsourcing can be a way to promote innovation, disrupt your industry, and access new skill sets that reposition your company in the market. Outsourcing project management services in the public sector.
Businesses now face a growing array of factors influencing. The continuing economic crisis has forced companies worldwide to revisit, with greater. Outsourcing can offer greater budget flexibility and control. Project risk management an organisation can benefit when the three lines of defence model is applied to project risk management by. Establishing collaboration between a nearshore development subsidiary and an offshore outsourcing supplier can present challenges even when the client has an established delivery model for outsourcing projects.
Six key success factors for outsourcing 2010 may turn out to be a pivotal year in the it outsourcing marketplace. This presentation is entitled outsourcing four projects and a process. Outsourced pms are not internal stakeholders, and they are not impacted by the business outcomes of the project. A company may outsource project management or any other task or. Hr outsourcing project report this research is aimed at analyzing the current state of the hr outsourcing market in india and the trends that are prevalent in the same. We believe that this introduction to project logistics management will give the reader some appreciation of the complexity. In the past most outsourcing that has been done has been in the it sector and a large part has been for projectbased assignments. The author begins the book with why businesses should leverage project management, then moves on to the project definition, the project life cycle, the project management institute pmi and project methodologies, and finally to each phase of the project.
Today, in this era of globalization there is high degree of competition in all areas. Pdf project management strategies in outsourcing best practices. In outsourcing as with any other project context, project performance can be measured as the extent to which a project is completed in time, within budget, and demonstrates a quality that satisfies customer requirements kerzner, 2009. Information systems project management, in particular, is influenced by this trend in a variety of ways, including human resource issues, scheduling, relationships management. Introduction to outsourcing for the project management. In spite of an impressive research intensity of the outsourcing. Nov 02, 2009 hr outsourcing project report this research is aimed at analyzing the current state of the hr outsourcing market in india and the trends that are prevalent in the same. Outsourcing is a strategic approach that makes project procurement management a more tactical approach. This paper discusses the outsource solution that was selected during the deployment of an information technology it project.
The proposition is based on project management knowledge and improved by a verification process conducted through interviews with professionals who have. Project risk management applying the three lines of. The lowstress way to find your next outsourcing project manager job opportunity is on simplyhired. What problems occur after the project managers start leading outsourcing projects instead of fulfilling the operational functions inside their company. Outsourcing allows a company to subcontract a particular area within the organization. New outsourcing project manager careers are added daily on. The outsourced project manager can ensure that best practices are adhered to throughout the project the company can become better prepared for handling similar projects in the future. Outsourcing project management tasks 14 brings certain benefits, but also has its limitations. The offshore outsourcing of information systems services has implications for is management. Pdf outsourcing project management services an emerging. The role of project management in achieving project success. Handson management of offshore, outsourced projects.
The type of outsourcing relationships can be described as. However, there are a number of times where companies hit obstacles, get entangled in complexities or simply get it wrong. Feb 05, 2020 businesses often think about outsourcing purely in terms of cost savings, but outsourcing can do more than just lower expenses. Rather, project based learning pjbl offers a strategic way forward to fill project management skills gap and project management knowledge deficit in the public sector, which should be subject to. Business process outsourcing, project report on business process outsourcing, definitions business process outsourcing, mba project on bpo, performance evaluation, work performance, knowledge management, industrial relations, implementation issues of business process outsourcing. Outsourcing and offshoring information system projects. System implementation and operation systems development project to solve business problem. The change management program, for it to be effective and successful, has to be a collaborative effort between the client and the outsourcing agency. In our previous article, outsourcing 101, we gave you a general overview of outsourcing. This document outlines how to evaluate your projects potential for outsourcing, and describes the factors that help determine outsourcings pros and cons as a project development option, analyses on its costbenefit and risks, and other requirements under it. Most of the project management material that i have read focus on generic project management practice and do not cross over into the blended skills of project management, vendor management, with multi. After the contracts are signed, you are left to achieve the great benefits of outsourcing in your project. Information time frame always a time lag between the points at which an event occurs and the points of which it is reflected in the tega oos. Outsourcing is the process of establishing and managing a contractual relationship with an external supplier for the provision of capacity that has previously been provided inhouse momme, 2001.
Project management component iii the outsourcing of the audits will provide support to the public financial management reforms under component iii of the strategic public sector transformation project. Oct 18, 2016 project management outsourcing, especially on the information technology it side, has been a burgeoning industry for some time. One of the most dynamic trends in todays global business environment is the offshore outsourcing of organizational activities. It staff augmentation allows a company to add staff to their teams based on the additional skills required to support their initiatives. Contents listoftables7 listoffigures8 1 introduction9 1. In spite of an impressive research intensity of the outsourcing process, there are only few. Pdf outsourcing project management services in the. Project management outsourcing outsourcing project management pm tasks is another, slightly different concept. When outsourcing a project management function, ensuring the outsourced vendor or pm is fully committed to all aspects of the project is key.
The outsourced project manager can ensure that best practices are adhered to throughout the project. Pdf outsourcing project management services in the public sector. Historically the outsourcing industry has seen considerable growth from the it sector. Outsourcing pioneers in outsourcing, the old observatio n that pioneers get arrows in their backs rings true. Strategicmanagement of outsourcing fakulteta management. This section provides an overview of outsourcing what it is, why one would outsource a business function, and the gains to be experienced by undertaking it. Practical outsourcing control by joe wynne july 24, 2006. This paper discusses the past fifteenyear evolution of offshore outsourcing also known as offshoring and the impact. The project aims to explore the outsourcing process in order to determine what drives the success of an outsourcing project from both a. An experienced pm service provider could enrich project teams in a public organization by bringing along project tools and techniques that have been proven effective in.
Organizations around the world regularly outsource many of their core business functions. Outsourcing management may be a good career choice for those interested in assisting organizations manage outside contracts or projects. Project management outsourcing what project management outsourcing is and is not. The project aims to explore the outsourcing process in order to determine what drives the success of an outsourcing project. Global trends in outsourcing and their impact an interactive qualifying project report. The influence of contract management on performance of. These project management pm practices are transferable to other types of projects beyond it that would benefit from project management. Outsourcing for project managers featuring mark mullaly july 21, 2016.
Outsourcing is the process of establishing and managing a contractual relationship with an external supplier for the provision of capacity that has previously been provided in house momme, 2001. An outsourcing company can often bring better management skills to your company than what would otherwise be available without significant restructuring. The subject of project success is at the heart of project management. Providing measurable organizational value, fourth edition book. While there is some information on tools, much more can be found in the next section, communication and collaboration tools.
The implementation of a facilities management outsourcing contract requires considerable engagement of crossfunctional resources, coordination, and creation of governance processes. Pdf project management strategies in outsourcing best. Outsourcing project management services an emerging opportunity raju rao, pmp, scpm principal consultant, xtraplus solutions abstract historically, the outsourcing industry has seen considerable growth from the information technology it sector. The study aims to investigate those management practices during the outsourcing process that are key drivers of outsourcing performance. So wherever you are in your own outsourcing journey, whatever the scope of your outsourcing deal, and whatever your industry background it is worth reading this handbook. Systematization of logistics outsourcing implementation. Information systems project management, in particular, is influenced by this trend in a variety of ways, including human resource issues, scheduling, relationships management, communication, quality control, risk, and evaluation. A stepbystep guide to writing a successful outsourcing rfp.
When companies look for outside help in completing it projects, they are generally considering two delivery models. Pdf outsourcing project management services in the public. A k munns and b f bjeirmi defining the requirement of work, establishing the extent of work, allocating the resources required, planning the execution of the work, monitoring the progress of the work and adjusting deviations from the plan. For these project management was an integral part and was included as part of the scope of the vendor or service provider. Some slides used in this video may not be entirely legible on screen so it is best to download the pdf. In the past most outsourcing that has been done has been in the it sector and a large part has been for project based assignments. In order to effectively outsource project management one has to consider training, documentation, the balance of inhouse skills to outsourced. Facilities management outsourcing strategies in the. Development of a framework for a successful outsourcing. Having a cohesive and proactive approach to identify, assess, mitigate, report, monitor and manage project risks having a holistic and consistent approach to project risk management. Pdf the successful implementation of outsourcing project within the manufacturing industries has lot of benefits to all party involved however.
Hr outsourcing project report human resource management. Explain project procurement management and outsourcing. Without adequate advice, planning and management, outsourcing projects can and do fail. Typically, an outsourced project manager can help with any. A k munns and b f bjeirmi defining the requirement of work, establishing the extent of work, allocating the resources required, planning the. Chapter 12 project procurement management and outsourcing chapter overview chapter 12 focuses on project procurement managementone of the nine project management body of knowledge pmbok areas. The second main part of the project is analysis and discussion of the outsourcing trends, who gains and who loses and the rationality of outsourcing decision, and long term strategic implications for the firm.
This component supports activities that contribute to the sustainability of gojs reform process in public. This presentation is entitled outsourcing four projects. When an organization or a public authority is aware of its weaknesses regarding project management, one solution is to outsource these activities to someone with the appropriate expertise. Evaluating whether or not to outsource your companys project management functions can be challenging. Brown and wilson 2005 stated that one of the most common outsourced functions is the it outsourcing. Similarly outsourcing of project management office functions has received no attention in the literature. Outsourcing project management services an emerging opportunity raju rao, pmp, scpm principal consultant, xtraplus solutions abstract historically, the outsourcing industry has seen considerable. The fact is that outsourcing is here to stay, and those that use it most effectively will reap the benefits of their foresight and good management. Having inhouse resources dedicated to managing daytoday operations of a completely geographically dispersed team is a potential cost to the company in and of itself. Tega payment system outsourcing project management. Brown and wilson 2005 stated that one of the most common outsourced functions is the it outsourcing, followed by production, accounting, hr and cleaning services. And one of the biggest challenges facing 21st century project managers is managing projects involving outsourcing at multiple sites around the world. This gave rise to business process outsourcing and now knowledge process outsourcing. Having inhouse resources dedicated to managing daytoday operations of a completely geographically dispersed.