To effectively handle various projects, businesses need to master efficient project management.
These days, businesses offshore their project management functions with the aim of effectively achieving their specific goals and KPIs. Through this strategy, they have control of the budget, time, and quality of the process.
The success of offshoring project management will largely depend on selecting and recruiting the right vendors.
A premier outsourcing services provider can help businesses improve their project management at a cost-effective rate.
How project management offshoring works
Project management offshoring is the process of delegating your project management functions to an offshore team.
It’s a strategy used by companies that have proven to be successful in many industries, including IT and software development.
A PwC study states that 97% of organizations believe that project management is essential to business performance and organizational success. Further, a lot of companies have seen benefits from using offshore project management services.
Misconceptions about offshoring project management
While farming out work to third-party providers has been businesses’ way to boost their daily operations, offshoring project management remains taboo for some.
Below we’ll shed some light on the two primary misconceptions of this specific offshoring practice:
Lack of control
The offshored project management team will take charge of the day-to-day activities of the specific project. This poses a major concern for many organizations as they fear of losing authority over their overall development process and outcome.
In reality, offshoring providers work closely with their clients, keeping them informed about the status of their projects.
More importantly, they ensure to have clients are involved in making critical decisions
Poor project quality outcome
It’s quite understandable that each offshoring company has its own standards when it comes to working with projects.
Other businesses may see this as a challenge as they won’t have a guarantee whether their project’s outcome will meet their expectations and needs.
A reliable project management offshoring provider knows your project requirements. Your offshored team will identify and be able to interpret your project goals accordingly. In turn you will be ensured to achieve your offshored project’s expected outcome.
7 key advantages of offshoring project management
When done right, offshoring project management can be an invaluable tool to reach business goals quickly.
Here are seven key benefits of offshoring project management:
1. Cost-effectiveness
Offshoring project management reduces company expenses in a variety of ways.
When a company outsources its project management functions to a trusted partner, they will have access to skilled and dedicated offshore staff.
Outsourcers often find that this strategy far less expensive than hiring full-time employees or even part-time contractors in their local area. This is especially true if those contractors are being paid higher wages for comparable work.
In addition, businesses can get rid of additional overhead costs like office space, equipment, and other travel expenses.
2. Access to a global talent pool
Hiring professionals from all over the world with different cultural backgrounds, experiences, and skill sets might sound like a risk in project management.
However, offshoring project management gives business access to a much larger and diverse talent pool. They are now not restricted by the limitations of local talent.
3. Expertise
Offshore project managers are often more experienced since they have worked with international clients managing complex projects in different industries.
They also tend to be more knowledgeable about different cultures. This can help make communication with the in-house staff easier when working across borders.
4. Compliance with the schedule and budget
If a company is running a project for an overseas client that needs to be completed by a certain date or within a set budget, then using an offshore team is a great option.
This is because any issues that do arise will be dealt with quickly and effectively. Outsourcing providers always have Standard Operating Procedures and backup plans in place to deal with these circumstances.
5. Increased efficiency and flexibility
With offshore project management, firms be able to focus on what matters most – their core functions.
They won’t have to worry about managing all of the details, which will free up their time so that they can concentrate on other revenue-generating tasks.
Companies can also scale up or down according to their needs, especially if they have a sudden spike in demand for products or services.
6. Fresh perspective
A fresh perspective can be beneficial in project management when looking at the company’s operations from the outside in.
Having someone who’s never worked for a company look at its processes and procedures can help identify areas where improvements could be made — whether it’s changing procedures or simply streamlining workflows.
Offshoring project management allows them to receive this type of outside perspective without having to spend time on internal training.
7. Project focus
When a company outsources its project management to an offshore company, it will get a team that is 100% dedicated to the project.
This means that they will have no other projects on their plate and can give a project their full attention.
