Tuesday, April 22, 2014

How does the use of outsourcing impact the way in which a project is managed?

The use of outsourcing will greatly impact just about every project in terms of how it is managed. There are a lot of treasons as to why this is so. First off, when a company decides to outsource something, whether it is programmers or even outsourcing an entire project to another company, it doesn't just move the work from one company to another--it creates a huge hole in the middle of business processes and that hole has to be "bridged" with efforts from the manager responsible for any of the outsourcing. A lot of managers become overloaded because they often don't realize how much outsourcing a project will affect their span of control. Managing anything that is outsourced takes more time than managing an employee they already have at their disposal--not less.

Some things to consider when outsourcing a project are:
1. How clear are the project's objectives?
2.  How complex are the projects?
3. How critical are the due dates of the project?
4. Risk management.
5. What is the history of the resource being used?
6. What is the turnover rate of said resource?
7. Communication issues
8. Project work familiarity
9. Is the outsourced project succeeding or failing?

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