A successful project inevitably requires a good mastery of project management. However, it happens that, very often, carrying out a project requires specific skills that one might not have. To deal with this, one solution is to outsource project management to a third party, specializing in this business. In this article, I will share with you the advantages of outsourcing the project management function, and how to properly supervise it to succeed in your project and Stardew Valley Rancher or Tiller.
Definition of outsourcing
Outsourcing is an anglicism which refers to the fact of outsourcing a set of services of an organization or a company, to another structure more competent in the matter. The action of outsourcing, gives by abuse of language, the verb “outsourcer”.
Generally, companies choose to outsource support functions in their organization, which are not part of their business. For example, an agricultural processing plant may choose to outsource its accounting to a specialized accounting firm. Outsourcing can also relate to a specific process of the company, during a given period. This is sometimes the case for staff recruitment. Some companies occasionally offer the services of a human resources firm for the recruitment of their agents or executives.
Advantages and disadvantages of outsourcing
Outsourcing has several advantages, but also some disadvantages.
- The first advantage of outsourcing is the assurance of having entrusted the outsourced service to a qualified professional in the field. This is also the very principle of outsourcing: we are aware of our weaknesses on a given subject, and we entrust it to a professional to guarantee the proper execution of this function.
- The second benefit of outsourcing is the reduced risk of failure. Outsourcing is sometimes an adequate countermeasure solution to face certain identified risks.
- When an activity is outsourced to a company rather than to an individual within the company, we are freed from the constraints linked to the human factor. For example, unavailability due to illness. With a company, we have all the necessary organization to overcome this type of deficiency.
That said, outsourcing can have some drawbacks which are:
- The major disadvantage of outsourcing relates to the financial aspects. Outsourcing is sometimes more costly financially than hiring a natural person. This is why the company must integrate it de facto into its operating budget from the start of the fiscal year. However, in the event that we need a resource for a specific need, it turns out to be less costly to outsource it.
- Another disadvantage of outsourcing services is the risk of external dependence of a business function. Indeed, by outsourcing a service, the company depends on an external resource for the management of this service. To guarantee the quality of the service Stardew Valley Fighter or Scout , a proper contract must be concluded between the two parties. This contract must include at least the aspects of service availability and confidentiality in the processing of information. In the case of a project, it is essential to have a specificationclear and precise to avoid any problem.
Outsourcing of project management
Project management is a profession that cannot be improvised. And it is important to understand that the more sensitive or important a project is, it becomes imperative to entrust its management to a natural person or an experienced legal person. This is where the outsourcing of project management turns out to be an interesting option.
The principle remains the same with the other functions of the company which are currently outsourced. All activities relating to project management are conceded to a specialized third party, for the execution and continuous monitoring of project tasks.
Outsourcing of project management must be a choice to be made even before the start of the project, in order to make all the necessary arrangements. It is even recommended to involve the chosen company in the reflections to be made during the initialization phase of the project: development of risk mapping, planning, communication plan, etc.
However, you should know that there is a difference between a PMO ([pii_email_4bd3f6cbbb12ef19daea]) and an outsourced project management. The PMO is a more transversal role on a set of projects. He ensures the application of good practices in the conduct of the project.
Five key success factors for project management outsourcing
To ensure the proper functioning of outsourced project management, several success factors must be taken into account.
- The project management function is an integral part of the project. Sometimes in the calibration and budgeting of the project, we minimize the aspects intrinsically linked to project management. And this is the first point on which successful outsourcing is focused: planning.
If you opt for an outsourced project management, this must be formally taken into account in the project budget, just like the other points directly related to the objectives and expected results of the project.
- The signing of a clear contract on the commitments of the structure with which the project management is outsourced. These commitments must reflect the predefined objectives of the project.
- Transparency and communication in relations with the company to which the project management is entrusted. In many cases, the outsourcing of project management can be compared to delegated project management. The company must periodically report to the project owner on the progress of the project and the difficulties encountered in the field.
- A fourth factor for the success of outsourcing is anticipation of possible points of dispute that may arise between the various actors in the project, and in particular between the project sponsor and the outsourcing company.
A frequent point of dispute is the sharing of responsibilities in providing the resources necessary for the development of the project. The agreement concluded between the two parties must ensure that the entire logistics circuit is specified, in due time, for the provision of the means planned for the proper execution of the work related to the project.
The client must also ensure that all the terms and conditions of the company managing the project are complied with as agreed in the contract.
- It is important to ensure that the chosen company has proven skills in project management, in general, but also that it has experience in leading projects of the same type. For example, if it is a road construction project, be sure to opt for a company that has experience in civil engineering project management. Depending on the type of project, the action to be taken has particular specifications that the Project Management must take charge of. This point must be specified in the project management outsourcing specifications.
Define specifications for project outsourcing
The process of choosing a company for the outsourcing of the project is initiated by specifications to be defined. The purpose of these specifications is to clearly specify the expectations of the project manager on the conduct of the project.
This document should contain at least:
- A brief description of the project
- An approximate interval on the execution budget
- The desired execution time
- The level of requirements on experience and skills expected for the management of the project
- The desired methodology or project management approach: in their response to the specifications, tenderers must explain their approach to project management.
Outsourcing of project management can contribute enormously to the success of your project, because you entrust it to a person Asmongold Girlfriend or structure qualified in the matter. However, poorly managed, outsourcing can be an additional source of litigation or a factor in project failure.