Project Management: Should it be In-house or Outsourced?

20 Sep ยท 6 min read

Project Management: Should it be In-house or Outsourced?

Superheroes get together to save the world. They build teams with leaders who eventually help them operate effectively while sharing the same goals. What if such a person does not lead them? The goal of unification may only be fulfilled partially if there is one to keep everyone motivated.

Yes, what you heard is true! When the cause is the same, superheroes require a manager to manage them well and keep them on course. Let's have a look at these numbers:

  • By 2026, the market for project management software will be $9.81 billion.
  • Project management typically results in a resource waste of 11.4%.
  • By 2030, there will be a skills gap of almost 25 million new project management specialists.

The manager is crucial in creating a team and leading them toward a common objective, not just in fiction. This is also true in the technical world. Because of this, IT project management is essential for team operating tasks.

Project Management is a guiding map to the development team for all the tasks to be implemented in a project. Thus, the role of the project manager should be considered. From planning the project budgets to monitoring development are all part of the PMO.

Who Is a Project Manager?

A project manager is a professional leader who guides the team in completing a task based on business demand. Whether planning the scope, defining project goals, communicating with the stakeholders, or leading the team to execute the project in the right direction, all are managed by project managers

In other words, a PM also serves as an intermediary between the team and the clients. Yet the planning phase continues once the tasks are assigned to the team. There is always a new request for change from clients from per business perspective and managing the same during the development cycle is what managers are good at. 

With outsourcing a development team, this becomes a choice of whether to hire an in-house manager or outsource them. And while evaluating such decisions, you should keep a few essential points like priorities and expenses in mind.

Goals and Priorities

The objectives of the project development should be crystal clear to the team. And such transparency is achievable only if the managers have proper knowledge of the project scope. Thus, it is easy to define the quality-driven result and set the priorities for the project.


For every project, whether in-house or outsourced, the stakeholders estimate the budgets and costs. The Project Manager here is vital in creating the estimations based on planned workloads. Being an intermediary between client and team, the requirements and project goals are always on track.

Though at every stage, the project manager will outlook the development, meet client expectations, and make sure the quality product is delivered on time.

Let's dive into the facts to know more about choosing the appropriate one.

In-House Project Management

In-house project management provides efficient operations in terms of onshore development. The In-House Manager will be available for queries at every step due to their existence on-site. They will share the organizational knowledge and functioning, followed by their expertise. Also, they expedite more transparent vision, as they are linked to the organization's employees and clients.


  • Proven industry experience: While deploying in-house PMO, you don't need to worry about the experience. This is because working in the same organization for a very long time will bring industry expertise to the table within the same company.
  • Knowledge of the company's existing work culture: They will be aware of its culture. Thus, helping in bringing the best for the company's growth.
  • Grasp of guiding internal resources: Since in-house PMs participate in company culture, they understand how the team works and know how to motivate the team to upskill them.
  • Effective communication with the organization's development team: In-house is more involved in project details. Thus, they communicate effectively with the development team, explaining the idea of the project.
  • A better understanding of business operations and client requirements: Moreover, they have a better experience of the company's business operations and possess a transparent vision of clients' objectives.


  • Vendor's dependency
  • Expensive to employ
  • Ineffective for short-term projects

Outsourced Project Management

If you're going to outsource development projects, outsourcing a project manager is a compatible choice. However, you may degrade the development process if you outsource IT projects and an in-house member for project management. This is because managing a team outside the organization for a manager could be more effective. Instead, an outsourced Project Manager will operate more efficiently with the outsourced development team.

Let's see how outsourced PM works best:


  • Experience on-demand: An outsourced project manager will have the experience per your requirement, as you will outsource them based on the skill and expertise they possess.
  • Better communication with the outsourced development team: If you outsource the development team, then choosing an outsourced PM is better. This is because if the team and manager are from the same outsourced company, they will communicate more effectively due to their knowledge of their work culture.
  • Flexibility and access to resources: The Outsourced PM will always share the experience of working with different organizations and easily access various resources required in the project development.
  • Transparency and objectivity of applications: They will genuinely understand the application and may provide a better solution due to awareness of different community issues.
  • Enhancing technicalities in software development: With the outsourced project manager, there is, in fact, more chance of upgrading the quality of the product with respect to the company's standards due to their leadership experience with different IT Projects.
  • Cost-effective: Outsourcing the project manager will always be cost-effective. You will have various experiences and expertise on a single table without worrying about the project budget.


  • Restricted access to information
  • Challenges in establishing leadership
  • Non-flexible communication with stakeholders due to different organizations

Are you still wondering what to choose? Well, it's always been a confusing choice. While outsourcing the project manager is the best choice if matched with an outsourced development team, hiring the in-house project manager is the company's classical choice. In such cases, estimate your needs and consider the budget, project scope, and development deadlines. Moreover, the project manager should have a significant amount of soft and tech skills.

In-house vs. Outsourced Project Manager

While choosing an in-house project manager is always a good option if you opt for the in-house development team. They will bring the expertise of the same organization, and the work culture will not be affected. Also, communication with the clients will go with ease.

On the other hand, outsourcing the project manager has its advantages. Here, the expertise and experiences from various companies come in one place. In addition, you don't have to worry about the project budgets, as outsourcing is more cost-effective. And it is like a cherry on the cake if you outsource the project manager with an outsourced development team.

Although, we always look up to the best when it comes to organizational benefits. You probably want to avoid mixing' n' match the in-house and outsourced combination of the development team and project managers. It's the responsibility and capability of managers who bring the team together to work for one goal. That's why we have heard this saying,

"With great power comes great responsibilities!"

Final Thoughts

There are many justifications for and against using internal or external project managers, but ultimately, it boils down to the demands and specifications of the project.

Select the option that would best advance the growth of your project after weighing all the advantages and downsides. These ideas will aid in defining the model's operation and quantifying the firm's success rate.

After all, our ultimate goal is to deliver the most beneficial solution for the business.

Read More: Trello or Jira? What's Better For Project Management

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