Partnership vs Traditional Outsourcing

by | Apr 28, 2022 | Project Management | 0 comments

Home » Partnership vs Traditional Outsourcing

A partnership is essential to successful product delivery. So much of project management is about relationships, team-building, and communication. That’s because managing projects successfully means getting a product or service into the customer’s hands and generating value for the business or organization that sponsored it. No matter what kind of product an organization is trying to develop, getting there requires a lot of unique skillsets and institutional competency in project management tools and techniques.

Standing up an in-house project management division is a considerable investment. Reaching the level of process maturity required to succeed is difficult.

partnership vs traditional outsourcing
Many organizations find themselves learning as they execute the project management lifecycle. They figure out how to navigate the complexities of managing stakeholders with competing objectives under tight cost and scheduling constraints. This is a risky way to operate.

Many organizations outsource their project management departments to deliver new products and services to customers. Outsourcing the pm department carries many benefits, allowing organizations to infuse their project teams with knowledge, experience, tools, and talent. But it’s important for organizations considering this approach to understand their options. Outsourcing has many different flavors, from consulting, to staffing, all the way to true partnership. Let’s examine the critical differences.

Outsourcing Relationships Defined

Companies in every sector seek outside help from experts who are not employed internally. Project management consulting firms typically make their money by offering one-size-fits-all solutions to typical business or project problems. Some companies advise client organizations and leaders on best practices. In contrast, others help organizations with staff augmentation, providing “bodies in seats” to fill critical roles on the project team. The challenge with this model comes down to knowledge and consistency.

While consultants are usually experts in their field, they rarely have a firm understanding of the unique challenges a business might face in delivering its project successfully. A consultant can come in and tell you that a best practice is to use dedicated staff for critical project team roles. Still, they don’t know your resources, and they lack the authority to push staffing changes.

Full outsourcing is another option that companies leverage to meet knowledge and capability gaps in their PM departments. In this model, a company would seek out an outside agreement with an organization to offload some project management and execution elements. The company benefits from the external organization’s knowledge, experience, processes, and tools. This arrangement can deliver considerable value to organizations that lack internal project management competencies and staff.

With outsourcing, many complications of building up an internal PM organization can be avoided. Like figuring out what to do with full-time staff hired for the project when it inevitably ends. But there’s still something missing in many outsourcing arrangements.

Projects have a beginning and an end. When the task or contract completes, the company no longer benefits from the external organization’s staff, tools, or experience. When they leave, all that institutional knowledge, the lessons learned, and the stakeholder relationships go with them.

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Who will sustain that product or service when they are gone?

The importance of choosing the right partnership

Many companies offer consulting services and outsourcing options, but very few deliver on the promise of a true partnership. A strategic partner to manage the PM department carries significant benefits outside the expectations of a traditional consulting or outsourcing arrangement.

Many consulting and PM firms view their internal PM competencies as proprietary knowledge and competitive advantage. They are happy for organizations to benefit from their knowledge and experience, but keeping their customers dependent on their service is core to the business model. It’s easy to find consultants to advise or an external organization to run the PM shop for you. Still, a strategic partner should share knowledge and build up the competencies of their partnership organization. This allows the acquiring organization to manage projects in the future better. Still, most critically, it also prepares the organization for the tasks ahead in sustaining their product or service in the market.

eCore is the perfect partner for companies looking to outsource their project management

In today’s volatile marketplaces, managing projects is more challenging than ever. The war for talent is reaching a fever pitch, and supply chain issues are raising costs and threatening the timeliness of project schedules across every industry. But delivering new products and services to customers is the core of virtually any business, non-profit, or government agency. These organizations can’t afford to wait until things settle down into a new normal. To meet the challenges of today’s market, many organizations rightly turn to companies with expertise in delivering projects on schedule and within budget, even in the face of uncertainty.

At eCore, we understand that it isn’t enough to execute our clients’ project work or fill empty seats. Organizations partnering with us not only benefit from our experienced project leaders, but we work to instill our knowledge and experience into every level of your organization.

Books (library)
Instead of fighting the competition for resources, our clients benefit from our unique source of professionals, documentation, guidance, and metrics for successful management and execution.

eCore hires and staffs projects while also implementing repeatable processes and standards. Our experts work with organizational leadership to introduce economies of scale for project execution while constantly seeking ways to improve project deliverables.

Many companies are great at providing advice or resources. Still, when the project is over, they leave their customers right where they started. The only valid method of success is improvement and value creation. We partner with our clients to build an authentic PM culture that emphasizes continual experimentation and development.

If your organization needs a strategic partner to transform the way you manage projects, or if you need to build your PM competency from the ground up, reach out to us.

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