The decisions to outsource or purchase new solutions are major strategic ones for most companies, since they involve weighing the potential cost savings against the consequences of a loss in control or implementation impacts of the new product or service. Today, Project Management outsourcing, as evidenced by our Lexem PMO Cloud solutions, is embraced by companies of all sizes and shapes. In fact many companies have decided that transactional and administrative functions are neither value added nor core competencies and consequently some companies are putting themselves at risk as a result of using outdated technology, management systems, and not complying with government regulations with regards to their internal Project Management Office.
Companies that decide to outsource their Project Management to Lexem Strategy do so for a number of reasons, all of which are based on realizing gains in business profitability and efficiency.
Principal merits include the following:
Cost savings – Many businesses embrace outsourcing and bundled service offerings as a way to realize cost savings or better cost control over the outsourced function.
Staffing levels – Another common reason for outsourcing is to achieve headcount reductions or minimize the fluctuations in staffing that may occur due to changes in demand for Project Management.
Focus – Some companies outsource Project Management in order to eliminate distractions and force themselves to concentrate on their core competencies.
Flexibility – Still others outsource Project Management to achieve greater financial flexibility, since the use of internal resources that formerly supported an outsourced function can improve and streamline a company’s cash flow situation.
Knowledge – Some experts tout outsourcing of Project Management as a way to gain access to new technology and outside expertise. This may be of particular benefit to small businesses, which may not be able to afford to hire PM experts or develop the in-house expertise to maintain high-level competencies.
Accountability – PM Outsourcing is predicated on the understanding, shared by business and vendor alike, that such arrangements require quality business service in exchange for payment which reinforces the expectation of performance.