Modern business is always demanding to know: “who is managing what?” and when it comes to outsourcing, sometimes it’s hard to identify exactly which roles would benefit from an outsourcing business model and what should remain in-house.
Project management is an industry that can often rely on the intimate understanding of a team. People really need to know who’s in place around them to operate a well-oiled machine. But sometimes this could also backfire. If a project manager knows their people too well, could that stand in the way of the overall business agenda?
There is a lot to be said for in-house project management vs. external project managers. Sometimes hiring a consultant may make more sense depending on the project scope and resources. So how do you know if you need a temporary handyman or a permanent company fixture? The following are some simple pros and cons to understanding what project management style works best for your business:
Internal Project Management
In-house project management is incredibly efficient for a variety of reasons. Your employee is on-site and available for queries at every step of the way. The ability to generate solutions often follows from understanding how the problem was created in the first place. The following are some positive and negative effects of using an in-house project manager:
- Non-Disclosure Agreements solidified
- Knowledge of the company culture
- Knowledge of operations
- Proven industry experience
- Ease of directing internal resources
- Vendor dependency
- Stifling competitive advantage
- Risk and access to company culture
Project management consulting is generally only effective with companies that still lack a defined brand. If you have a company culture which is already well established, it may be difficult to introduce a big player as a temp.
External Project Management
Project management consulting is not only about knowing your client to a “T.” Project management consulting is about spending the time to understand brand identity and presenting a professional solution. The following are some positives and negatives to external project management:
- Objectivity and separation of culture applications
- Outsourcing costs far less than keeping a PM in-house
- Fresh outlook on marketing strategies
- Flexibility and access to resources
- Technical focus on advancing project skills
- Little to no knowledge of branding
- Ineffective communication
- Difficulty in establishing leadership
- Access to proprietary information
- Absence of relationships or company morale
External project managers can be a risk because they have access to proprietary information. This fear of stolen data is usually what stops firms from going the external route. However, the sharing of information is essential to getting the job done. In order for a person to walk in and control a project, they need to have a genuine concept of the surrounding community issues and complaints.
The benefits of outsourcing project management can be incredibly advantageous if it is the right fit for the company. Younger companies and smaller offices typically perform better with outsourcing than older, established organizations. When it comes to deciding, experience is critical. However, if you choose a project manager with great proficiency in your trade, where they put their desk won’t nearly matter so much.