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The Benefits of Outsourcing Project Management: A Strategic Approach for Business Success

If you’re reading this, chances are that your organization is already juggling a multitude of tasks, projects, and deliverables. With the increasing complexity of the business landscape, the question becomes: How can companies manage their growing portfolio of projects more effectively? The answer may surprise you, – Outsourcing Project Management. While it might seem counterintuitive to place such a critical part of your operations in the hands of an external entity, there are compelling reasons why this could be a strategic decision for your business.  Let’s take a quick look at some of the reasons why Outsourcing Project Management might make sense for your business.

Focus on Core Business Functions

I don’t think I would get much pushback when it comes to the need to allow our internal resources to focus on core business functions. That is to say, if my business is in Marketing, I would want to focus my resources and attention on Marketing activities. Outsourcing Project Management allows companies to devote more time and energy to areas that directly contribute to revenue generation, customer acquisition, and business expansion.  While advances in technology certainly aide in business growth, the implementation of technological capabilities would be delivered more effectively by Outsourcing to a company whose business is Project Management.

Specialized Skills and Expertise

In addition to being able to focus on your Core Business, companies also benefit from specialized Skills and Expertise that may not already be on their payroll. Outsourcing project management provides access to a pool of experts who specialize in project planning, execution, and evaluation. These professionals have a deep understanding of project methodologies, risk management, and quality assurance. They bring with them a wealth of knowledge and experience that your internal team may not have. This results in more efficient project delivery, cost savings, and ultimately, a better return on your investment.

Cost-Efficiency

Outsourcing can help manage and reduce costs in several ways. It eliminates the need for extensive training or upskilling of in-house staff, thereby saving on training costs and reducing the downtime associated with such training. Also, since the outsourced project managers are not your employees, your company can save on costs associated with benefits, taxes, and overhead expenses.

Risk Management

Outsourced project management teams come with deep experience and tools to anticipate, evaluate, and manage potential project risks. These could range from timeline delays, budget overruns, or scope creep. By actively managing these risks, the outsourced project management team can increase the chances of project success.

Increased Flexibility and Scalability

Flexibility is a significant advantage of outsourcing. It enables your organization to adapt more efficiently to changes in the business environment or project requirements. You can upscale or downscale the project management resources as needed, without the long-term commitments of hiring full-time employees. This flexibility allows companies to remain agile, responding more effectively to market changes and customer demands.

Access to Latest Technology and Best Practices

Outsourcing partners invest in the latest project management tools and stay updated on best industry practices to stay competitive. This means your projects will benefit from the latest advancements and practices in project management without your company having to invest directly in acquiring these tools or training for them. Another cost-saving benefit.

In a rapidly evolving business landscape, the strategic use of resources can be the key differentiator between success and mediocrity. Outsourcing project management may seem like a bold step, but the benefits it brings in terms of cost savings, risk management, scalability, and access to specialized expertise make it a worthy consideration.

Remember, the aim isn’t to lose control over your projects but to gain more efficient management of them. Outsourcing project management is a strategic decision that, when done right, can bolster your operational efficiency and strategic goals. It’s about letting the experts do what they do best, so you can focus on what you do best – running your business.

Claude Bird

Project Management Office Lead

About Columbia Advisory Group

Founded in Dallas in 2012, Columbia Advisory Group LLC (CAG) is an established IT consulting firm renowned for delivering cost-effective, meaningful, and practical IT solutions that solve complex business problems. Our seasoned teams offer comprehensive insight across diverse regulatory and economic environments, providing unbiased, straightforward analysis and recommendations. We pride ourselves on our deep understanding of IT while remaining software and hardware-agnostic. Regardless of your organization’s growth trajectory or economic landscape, we at CAG are adept at adapting to your unique needs and complexity, offering tailored solutions to drive your success.

Contact us at info@columbiaadvisory.com.

Five Common IT Project Management Mistakes

IT project management is complex, and mistakes are common. However, certain mistakes can have significant consequences, such as project delays, cost overruns, and even project failure. Over the next few blogs, I will discuss five common IT project management mistakes and provide a few insights that can help avoid some of the pitfalls. These discussions will include the following:
1. Poor Project Scope Definition
2. Inadequate Risk Management
3. Ineffective Communication
4. Deficient Resource Planning
5. Lack of Project Governance
This blog will focus on Poor Project Scope Define

Poor Project Scope Definition

Poor scope definition is one of the most common IT project management mistakes. Scope refers to the objectives, deliverables, and tasks that define the boundaries of a project. In other words, scope describes what, why, when, and budget of the project. Just imagine being told by your supervisor “go build a RED widget, and I need it tomorrow” …  Where would you start?… You get the point? Failure to clearly define the scope of an IT project leads to unexpected outcomes, missed deadlines, cost overruns and maybe moreover a negative hit to your brand due to customer dissatisfaction. A clear scope definition ensures that the project objects are clearly understood by both the requester and the project team. It helps to create shared expectations between the parties and sets the boundaries of the project and prevents “scope creep”.

Scope Creep (also known as “requirement creep” or “feature creep”) happens when the key stakeholders continually change the requirements of the project over the project lifecycle. Please note that scope creep can also happen due to misunderstanding and miscommunication within the project team. That said, Scope Creep is not always a bad thing. Customer needs evolve over time and delivering a project that answers their needs often means altering the scope. Scope creep is, therefore, a reality that every good project manager expects and plans for and should be ready to control (Agile).

Now that we understand a bit better the downside of a poorly defined project definition, let’s look at some ways we can minimize the negative effects:

  • Involve stakeholders early in the project planning process. The sooner the better, having a understanding the “why” of the project will facilitate better understanding and make it easier to build consensus.
  • Clearly define the project objectives upfront and Write Down your deliverables. The project objectives should be written and serve as the contract between the stakeholders.
  • Define a change management process and enforce it. Let’s face it, no matter how well a project is defined, change will happen. A good It project manage will have an agreed upon change management process. As stated above, not all changes in a project’s lifecycle are bad.

Well defined project definition will help to reduce the overall project cost, it will facilitate on-time delivery, it will ensure quality, and paramount to it all ensure a satisfied customer. There are many books and whitepapers written on the importance of a good project scope definition. Below are a few resources should you want to do a bit more research on the topic:

Forbes Advisor – Scope Creep: Definition, Examples & How To Prevent It

Wrike – How to combat the 4 Main Sources of Scope Creep

Project Scope Management: A Practical Guide to Requirements for Engineering, Product, Construction, IT and Enterprise Projects (Best Practices in Portfolio, Program, and Project Management)  (ISBN-10 1482259486)

Inadequate Risk Management

IT projects are inherently risky. Failure to adequately manage these risks can lead to delays, cost overruns, and even project failure. According to Kaplan and Fried, “risk is a part of everything. The key is to acknowledge it and face it head-on” (Kaplan and Fried, 2010).

To avoid inadequate risk management, IT project managers should identify potential risks early in the project planning process. This can be done through techniques such as brainstorming and risk mapping. Once risks have been identified, IT project managers should prioritize them based on their likelihood and impact on the project. Mitigation strategies should then be developed and implemented to reduce the likelihood and impact of these risks.

Poor Communication

Effective communication is critical to the success of any IT project. Failure to communicate effectively can lead to misunderstandings, missed deadlines, and project failure. According to Kaplan and Fried, “communication is key, but over-communication is even better” (Kaplan and Fried, 2010).

To avoid poor communication, IT project managers should establish clear lines of communication with stakeholders early in the project planning process. Regular project status updates should be provided to stakeholders throughout the project lifecycle. Additionally, IT project managers should establish a communication plan that outlines the frequency and method of communication.

Inadequate Resource Planning

IT projects require a significant number of resources, including time, money, and personnel. Failure to adequately plan for these resources can lead to delays, cost overruns, and project failure. According to Kaplan and Fried, “resources are finite. Make sure you know what you need before you start” (Kaplan and Fried, 2010).

To avoid inadequate resource planning, IT project managers should conduct a thorough analysis of the resources required for the project. This can be done through techniques such as resource leveling and resource allocation. Additionally, IT project managers should develop a resource plan that outlines the required resources and their availability throughout the project lifecycle.

Poor Project Governance

Poor project governance is another common IT project management mistake. Governance refers to the framework of policies, procedures, and guidelines that ensure that a project is executed effectively and efficiently. Failure to establish proper project governance can lead to project failure.

According to Kaplan and Fried, “governance is a system of checks and balances” (Kaplan and Fried, 2010). In other words, proper project governance ensures that the project team is accountable for their actions and that the project is aligned with the needs of the business or stakeholders.  

IT project management is a complex process that requires careful planning, execution, and monitoring. Common IT project management mistakes, such as poor communication, lack of planning, inadequate resource management, failure to manage risks, and poor team management, can lead to project failure. Project managers must be aware of these mistakes and take steps to avoid them. By doing so, they can increase the chances of project success and deliver quality IT projects on time, within budget, and with the highest quality.

Claude Bird

Project Management Office Lead

About Columbia Advisory Group

Founded in Dallas in 2012, Columbia Advisory Group LLC (CAG) is an established IT consulting firm renowned for delivering cost-effective, meaningful, and practical IT solutions that solve complex business problems. Our seasoned teams offer comprehensive insight across diverse regulatory and economic environments, providing unbiased, straightforward analysis and recommendations. We pride ourselves on our deep understanding of IT while remaining software and hardware-agnostic. Regardless of your organization’s growth trajectory or economic landscape, we at CAG are adept at adapting to your unique needs and complexity, offering tailored solutions to drive your success.

Contact us at info@columbiaadvisory.com.

Maximizing Efficiency and Success: The Benefits of Outsourcing IT Project Management

Outsourcing project management can bring numerous benefits to a company, including reduced cost, reduced time to market, and staying true to the objectives, reduced scope creep. Here are some key reasons why outsourcing project management can be a good idea:

  1. Expertise and specialization: One of the main advantages of outsourcing project management is that it allows companies to tap into specialized expertise and knowledge. Outsourcing firms typically have a team of experienced project managers who have a deep understanding of various industries and sectors. This can be particularly useful for companies working on complex projects that require specialized skills and knowledge.
  2. Cost savings: Outsourcing project management can help companies save a significant amount of money. By outsourcing project management, companies can avoid the cost of hiring, training, and managing a team of in-house project managers. This can be especially beneficial for small and medium-sized businesses that may not have the resources to hire and manage a full-time project management team.
  3. Improved efficiency: Outsourcing project management can also improve efficiency as it allows companies to focus on their core business activities. By outsourcing project management, companies can free up time and resources that can be better utilized in other areas of the business. In addition, outsourcing firms typically have systems and processes in place to ensure that projects are completed on time and within budget, which can help to reduce the risk of delays and cost overruns.
  4. Access to technology and tools: Outsourcing project management can also give companies access to the latest technology and tools, which can help to improve project efficiency and effectiveness. Many outsourcing firms invest in the latest project management software and tools, which can benefit companies that may not have the budget to invest in these tools themselves.
  5. Flexibility: Outsourcing project management can also provide companies with greater flexibility. By outsourcing project management, companies can scale up or down their project management resources as needed, depending on the demands of the business. This can be particularly useful for companies that experience fluctuations in project demand or have unpredictable project schedules.
  6. Improved quality: Outsourcing project management can also lead to improved project quality. Outsourcing firms typically have strict quality standards and processes to ensure that projects are completed to the highest standards. This can be especially beneficial for companies working on projects that require a high level of precision and attention to detail.

In conclusion, outsourcing project management can bring numerous benefits to a company, including access to specialized expertise and knowledge, cost savings, improved efficiency, technology and tools, flexibility, and improved quality. By outsourcing project management, companies can focus on their core business activities while leveraging the expertise of the outsourced project management team to deliver projects that further enhances their business outcomes.

About Columbia Advisory Group:
Columbia Advisory Group (CAG) is a leading Information Technology (IT) consulting firm. CAG’s team has assessed and helped improve the performance of more than 300 technology organizations and IT departments, including many higher education institutions, state agencies, and Fortune 50 customers. Practice specialty areas include Infrastructure, IT Service Management, Cybersecurity, and A/V Services. CAG improves business outcomes with IT insights and expert technical support. Based in Dallas, Texas, CAG works extensively with clients throughout the U.S. Contact us at .

Picture of Claude Bird

Claude Bird

Director, Project Management