The Awesome Benefits of Project Management Outsourcing

Project management outsourcing is one way to ensure project completion within the set target, which can also result in cost savings. Skilled project management professionals are in high demand and come at a premium price. However, hiring an external contractor to work with your team or engaging a business process outsourcing firm to handle all aspects of your operations from beginning to end are both viable alternatives.

What is Project Management?

The Project Management Institute defines Project Management as the utilization of specific knowledge, skills, tools, and techniques to deliver something of value to people. Any project follows a series of processes, which constitute the Project Management lifecycle. These stages are the initiation phase, planning phase, execution phase, project monitoring, and control phase, and project close. To learn more about each phase of the project management process, you can refer to our blog on Breaking Down Steps in Project Management Process.

Given the multitude of stages, resources, elements, and variables involved, Project Management is a complex undertaking. This complexity has given rise to the emerging trend of outsourcing project management.

What are the benefits of business process outsourcing?

1. Saving time

Business process outsourcing can provide your organization with more available time. By outsourcing repetitive tasks, the hours that were previously allocated to these activities can now be utilized for other tasks. This can lead to an immediate increase in productivity and efficiency for your organization.

This implies that your organization’s knowledge workers in business operations, marketing, and sales, or HR can complete projects in a shorter period of time or assume additional responsibilities. Moreover, when employees have the opportunity to use their skills and perform diverse tasks, they are likely to feel more content and fulfilled. Improved employee satisfaction can enhance productivity and ultimately lead to greater workplace efficiency.

2. Saving Costs

There are various ways in which outsourcing your project management can result in cost savings.

Outsourcing the entire project management process can help you save on additional expenses related to equipment, tools, or location rent that may be required to complete your project.

In addition, outsourcing project management can result in cost savings related to hiring resources and allow your employees to focus on other tasks, thereby saving time and effort. By outsourcing project management, you can allocate internal resources for other tasks while paying a fixed amount for the completion of the project.

3. Access to Specialized Skills

One primary advantage of outsourcing project management is that it enables you to concentrate on your core business operations. Although project managers possess considerable expertise, they are always learning more. Outsourcing your projects enables you to tap into a wider range of skills than you would have access to otherwise.

For example, suppose your company specializes in manufacturing advanced medical equipment but does not yet provide IT or marketing services. In that case, you could outsource those tasks to companies that specialize in those areas. This approach enables your company to concentrate on its core competencies while leveraging the expertise and experience of other businesses for specific tasks outside its realm of expertise.

4. Flexibility and scalability

Successful outsourcing can help companies achieve greater growth potential and business flexibility while minimizing costs and time. When scaling a company, leadership often considers hiring new employees to boost sales, business development, and customer support. However, this approach may be premature or entail financial risks due to uncertainties about expenses versus guaranteed revenue.

By utilizing business process outsourcing, companies can mitigate financial risks and achieve greater flexibility in their operations, leading to better growth potential. Instead of immediately hiring new staff to support sales, business development, and customer support during scaling, companies can turn to BPO as an intermediary solution. BPO enables companies to quickly ramp up activities or scale back as needed, without the long-term commitment of full-time employees. This flexibility is particularly beneficial for companies in the growth phase, as it allows them to efficiently allocate resources and focus on core business objectives.

5. Better Followed Schedules

By outsourcing your project management, you are engaging professionals who specialize in project delivery.

Delivering projects on time and meeting project deadlines is crucial because adhering to the agreed-upon schedule is a key component of achieving a successful project outcome.

Outsourcing enables you to hire individuals who possess expertise in managing teams and delivering projects within specified timeframes, thereby reducing the turnaround time for each project.

6. Hire Faster

One notable advantage of outsourcing project management is the ability to expedite the hiring process. Several factors contribute to this, but a particular aspect stands out. By outsourcing, hiring managers can concentrate on seeking out the ideal talent for their organization, without the added burden of building an internal team or training them on procedures and best practices. This way, they can avoid concerns regarding the availability of suitable personnel.

Outsourcing project management also facilitates faster staffing of vacant positions. In the event of a vacancy within your company, there’s no need to rely on internal recruitment. By outsourcing, your organization gains leverage, and the responsibility for hiring is transferred to a third-party management team. This way, the hiring process is expedited, and your company can resume operations without undue delay.

7. You May Gain Fresh Perspectives

External project managers and teams offer enhanced transparency, in addition to their ability to provide objective viewpoints. They possess extensive industry experience, having worked with various companies, which can be advantageous for your organization to learn the most effective tips and tricks of the trade.

Why should Companies consider Project Management Outsourcing?

There are several significant factors why companies and organizations opt to outsource, with the associated benefits being the primary reasons behind their decision to outsource project management.

Certification is a key motivator for outsourcing, beyond the potential benefits that may be realized. In some cases, particular projects or clients mandate the utilization of certified project managers to oversee their initiatives.

In situations where none of your staff possesses the necessary certification, outsourcing becomes a more logical choice than investing resources into obtaining the required certification for your employees. By outsourcing to someone who already possesses the relevant certification, you can save time and money, while also ensuring that the project is managed by someone with the requisite experience.

The Project Management Professional Certificate (PMP) is a prevalent certification in project management, which demands 35 to 60 months of experience. In such cases, outsourcing becomes an obvious choice due to the required level of experience that is difficult to acquire in-house.

Additional reasons to outsource project management include any staffing difficulties within your company, such as a shortage of personnel or a deficiency of employees who possess the necessary experience to manage a project effectively.

Another factor that may necessitate outsourcing project management is the need for dedicated attention to be directed toward the project at hand, which your employees may not have the necessary bandwidth to provide.

Additional reasons for outsourcing project management can be financial limitations, which may preclude hiring a full-time project manager, or a lack of previous experience in managing similar projects.

Conclusion

Having considered the advantages of outsourcing project management, it is now up to you to decide which approach is best suited for your projects. If you seek greater authority, improved oversight, and superior output, employing a project management program may be a more effective solution than outsourcing.

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