What You Need To Know About Outsourcing and Project Management

What You Need To Know About Outsourcing and Project Management

In business when you’re stumbling over management bricks, it’s kind of hard to stay positive.

How so?

Economist Geoff Reiss put it best that every project management is like juggling three balls at once— time, cost and quality.

It’s a dynamic and interdependent process where one thing has an immense impact on the other. You miss one throw and you completely disrupt the entire flow.

That’s why if you’re not up to the task of juggling variables like a circus performer, it’s best to work with an outsourced project manager who can shuffle through the pressure like a pro.

Hiring an outsourced project manager is an excellent alternative for the traditional PMs; budget-friendly, flexible and competent.

These third-party workers can get the job done— and not without some extra benefits too.

What is a Project Management?

Project management is like the culmination of skills, knowledge and experience, putting them all together towards the achievement of a specific goal.

The three important variables that play out in project management are cost, time and quality.

One thing that separates project management from just “mere management” is that it has a project milestone and a well-defined timespan. That factor alone makes project management highly challenging, requiring skills and some good old business awareness.

Five Stages of Project Management

Since project management is a complex venture, it is usually divided into several phases that detail the beginning and end of the project. The stages are as follows:

1. Initiation (Start of the Project) – establishing the purpose of the project and setting the budget

2. Planning (Key Phase) – setting goals for the project

3. Execution (Project Launch) – carrying out the plan and project deliverables

4. Monitor (Project Progression) – measuring the performance and dealing with the issues

5. Closure (End of the Project) – completing the tasks and dissolving the project

What is an Outsourced Project Manager?

Outsourced project managers are contractual workers who are responsible for managing a project. They create a budget plan and make sure that the products are finished on time and up to quality standards.

In case of issues in the phases of the project, the outsourced PM will handle it and accordingly, communicate it to the team.

What Is the Main Purpose of Outsourcing?

Are you wondering why companies choose to outsource? Why do they do it when they can work with someone within the organization? What gives?

The reason for outsourcing has no definite answer. Companies do it, depending on what they need and want. However, the main motive for accessing outside help is usually to reduce operational costs.

How does this affect the cost exactly?

When firms decide to outsource, they’re basically handing over a good portion of their workload to a third party. In fact, according to a study, 27% of companies do it for this reason alone. By the number, outsourcing cuts down labor costs to a staggering 70 percent. Some would even go further saying, it’s about 90% of reduced cost.

There are other reasons of course for choosing to outsource, like wanting to share risk, increase efficiency and improve company focus.

In a nutshell, outsourcing is highly effective for an organization, especially for start-up businesses.

What Are the 5 Benefits of Outsourcing?

Without question, outsourcing can give companies a head start over their competitors. In fact, recent IT outsourcing statistics showed that 9 out of 10 global companies used outside help.

But if you’re still unconvinced by this figure, then perhaps, a list of all the important benefits of outsourcing a human virtual assistant might just do the trick.

  • Saves Tons of Company Money

    As you already know, the main purpose why companies choose to outsource is because they want to reduce both labor and operational costs.

    The reason behind this cost-effectiveness is that the countries where these third-party providers reside like the Philippines and India have a lower cost of living compared to hiring someone from the U.K. or the U.S.

    On top of that, you don’t even have to worry about the extra benefits of hiring outside. like paying for health care or insurance plan.

    In terms of equipment, the outsourced provider will take care of the office supplies, internet connection and computer. Form the get go, they’re pretty much set-up and ready to do the job.

    This means your money could go a long, long way with outsourcing.

  • Saves Time and Effort

    From 9 to 5, how much work can an employee do?

    People can accomplish many things in 8 hours that directly contribute to the core tasks of the company. But that’s only possible, if they don’t have to do the menial tasks in between.

    Yes, we’re talking about replying to emails, answering calls, transcribing data and setting schedules. These tasks although necessary can be draining your time and your creativity sprint.

    But thanks to outsourcing, you are free to use your time doing things that are pivotal in scaling your business.

  • Access to High-Level Skills and Talent

    Outsourced workers are independent workers hailing from different time zones with specializations under their belt.

    Without geographical limitations, you can tap into the best outsourcing destinations. To cite an example of outsourcing, the Philippines has long dominated the customer support industry while India is the best place to hire a web developer.

    You can use this information to strategize, find what you’re looking for, and fill the talent gap in your company.

  • Fresh New Ideas

    As mentioned, offshore workers are people residing from across the world. They have tons of experience, working with a variety of industries.

    Do you know what that means?

    They come equipped with varying backgrounds and mindsets. This implies that you’re not only casting a wider net for skill and talent, but you’re also getting newer perspectives which are really helpful in growing an organization.

    You could definitely learn a thing or two!

  • Being on Schedule

    Let’s say, you’re working on a project and as we know, project management is pretty sleek in terms of meeting deadlines.

    So, when you outsourced a project manager who is someone trained to deliver these types of time-constrained projects, you can be sure that you will be submitting milestones within the scheduled timeframe.

    Being on schedule means savings cost, effort and time.


What Is Project Outsourcing? And What Is the Effect of Outsourcing in Project Management?

Project outsourcing is an effective tool used by businesses to complete a task efficiently, even more so when a project requires some specific skills.

In a nutshell, when outsourcing is incorporated into project management, the result is to rave for.

You see, working with an outsourcing PM gives you transparency in key developments, better team management, reduced cost and access to a wider pool of talents.

But the best thing about combining this two together is gaining the opportunity to flourish by partnering with an outsourcing company. Though many industries are still shilly-shallied about outside help, outsourcing is a proven productive movement.

On the downside, some disadvantages of outsourcing are often about losing control. Since offshore workers are not from within the organization, they may operate differently, deviating from the nature of the business. Thus, there might be some consistency issues to resolve.

Then again, as a business owner, this is up to you to decide. Does the cost outweigh the benefits?

Takeaway!

By now, you probably understand why outsourcing is a go-to business strategy. It speeds up development, cuts cost, allows focus and saves up time.

In short, it’s a great channel to leverage flexibility and agility in your business chain.

Now, it’s time for you to tap into this experience. See through the success of your project management, with an outsourced project manager!

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