Why Outsourcing Your Project Management Office (PMO) Is the Key to Better Outcomes

Companies are constantly looking for ways to streamline their operations and increase efficiency. One growing trend that has gained popularity in recent years is outsourcing project management office (PMO) functions. This involves hiring an external company or individual to handle the management and oversight of projects within an organization. While some may view this as a risky move, there are actually numerous benefits to outsourcing PMO functions.

First and foremost, outsourcing PMO functions allows companies to focus on their core competencies. By delegating project management tasks to an external party, businesses can free up their internal resources to concentrate on their primary objectives. This can lead to increased productivity and better utilization of resources, ultimately resulting in improved overall performance.

Another advantage of outsourcing PMO functions is cost savings. Hiring and maintaining an in-house PMO team can be a significant expense for companies especially for smaller businesses. By outsourcing, companies can save on the costs of recruitment, training, and employee benefits. Additionally, outsourcing allows for more flexibility in terms of project management needs. Companies can hire external PMO services on an as-needed basis, rather than having a full-time team on payroll. To understand the full cost of an internal PMO read the cost of excellence: establishing and sustaining a high performing pmo, or use a free PMO cost calculator to help analyze the full costs of starting and sustaining a best in class PMO or Project Portfolio Management Office (PPMO).

Outsourcing PMO functions also brings in a fresh perspective and new ideas. External PMO providers often have a wealth of experience working with different industries and organizations, giving them a broader understanding of project management best practices. This can bring a new level of innovation and efficiency to a company’s project management processes. Furthermore, external PMO providers are not influenced by internal politics or biases, allowing them to make unbiased decisions and recommendations for the benefit of the project.

One of the most significant benefits of outsourcing PMO functions is access to specialized expertise. PMO providers are often highly skilled and experienced professionals who have a deep understanding of project management methodologies and tools. They can bring in their expertise to help companies improve their project management processes, implement new strategies, and overcome any challenges that may arise. This can be especially beneficial for companies that do not have a dedicated PMO team or lack the necessary expertise in-house.

Outsourcing PMO functions also allows for scalability. As businesses grow and take on more projects, their project management needs may also increase. By outsourcing, companies can easily scale up or down their PMO services as needed, without the hassle of hiring and training new employees. This can be particularly useful for companies that experience fluctuations in their project workload.

Another advantage of outsourcing PMO functions is risk management. PMO providers are well-versed in identifying and mitigating potential risks in projects. They can help companies develop risk management strategies and ensure that projects are completed within budget and on time. This can be especially beneficial for companies that are new to project management or have a high-risk project on their hands.

In conclusion, outsourcing PMO functions can bring numerous benefits to companies of all sizes and industries. From cost savings and increased efficiency to specialized expertise and risk management, outsourcing can help companies achieve their project management goals and improve overall performance. As the trend towards outsourcing continues to grow, it is essential for businesses to consider the potential benefits and make informed decisions about their project management needs.

For more information consider visiting the websites of PWC, Deloitte, Metagyre, or Infosys.