Project Management : In-house or Outsourced?

20 Sep · 6 min read

Project Management : In-house or Outsourced?

Wonder how superheroes unites for the same cause to save the world. With the same motives, they form teams with leaders who eventually guide them to work efficiently. What if there is no such leader to guide them? Then the whole motive of uniting may not be achieved just because there is no one to keep them focused.

Yes, you heard right! Even superheroes need a manager to operate them effectively and keep them on track when the cause is same. Not only fictional, in the technical world also the manager plays an important role in forming a team and operating it towards one goal. That is why IT project management is crucial with respect to team operational activities.

Project Management serves as a guiding map to the development team for all the tasks to be implemented in a project. Thus, the role of project manager can’t be underestimated. From planning the project budgets to monitoring development are all part of the PMO. Then how to determine whether project management is to be outsourced or in-house.

Who is Project Manager?

A Project Manager is a professional leader who guides the team in the scope of completing the 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 team and the clients. Yet the planning phase doesn’t end once the tasks are assigned to the team. There is always a new request for change from clients as 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 whether to hire an in-house manager or outsource them. And while evaluating such choices, you should keep in mind a few basic points like priorities and expenses.

Goals and Priorities : The objectives of the project development should be crystal clear with the team. And such transparency is achievable only with the managers having proper knowledge of the project scope. Thus, it is easy to define the quality-driven end result and set the priorities in the project.

Expenses/Budgets : For every project whether in-house or outsourced, the budgets and costs are estimated by the stakeholders. The Project Manager here plays an important role in creating the estimations based on planned workloads. Being an intermediary between client and team, the requirements and project goals are never off the 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 organization's employees and clients.

Pros

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 very long will bring the industry expertise on table and that within the same company.

Knowledge of company’s existence work culture : It is obvious that they will be aware of the company’s existing 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 up-skill them.

Effective communication with organization's development team : In-house are more involved in project details. Thus, they communicate effectively to the development team explaining the idea of the project.

Better understanding of business operations and client requirements : Moreover, they have a better understanding of company’s business operations and possess a transparent vision to clients objective. 

Cons

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

Outsourced Project Management

If you’re going to outsource development projects then outsourcing a project manager is a compatible choice. Think in this way, if you outsource IT projects and a in-house member for project management, you probably may degrade the development process. This is because managing a team outside the organization for a manager is not very effective. Instead, an outsourced Project Manager will operate more efficiently with the outsourced development team.

Let’s see how outsourced PM works best:

Pros

Experience on-demand : An outsourced project manager will be having the experience as per your requirement as you will outsource them on the basis of skill and experience they possess.

Better communication with outsourced development team : If you outsource the development team, then choosing an outsourced PM is a better choice. This is because if the team and manager are from the same outsourced company, then they will communicate more effectively due to knowledge of their same work culture.

Flexibility and access to resources : The Outsourced PM will always share the experience of working with different organizations and will have ease to access various resources required in the project development.

Transparency and objectivity of applications : They will have a genuine understanding of 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 company’s standards due to their leadership experience with different IT Projects.

Cost effective : Outsourcing the project manager will always be cost-effective. As you will have the various experience and expertise on a single table without worrying about the project budget.

Cons

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

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. Though in such cases, you should estimate your needs and take considerations over the budget, project scope and deadlines of project development. Moreover, the project manager should have a significant amount of both soft skill and tech skill.

In-house vs. Outsourced project manager

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

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

Although, we always look up for the best when it comes to organizational benefits. You probably don’t want to mix ’n’ match the in-house and outsourced the combination of 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!”

Wrapping Up

There is a lot to be said when it comes to in-house vs outsourced project managers but the bottom line is it should depend on the needs and requirements with respect to project development. Considering all pros and cons, you should choose what is best for the development of your project. These points will help define the model work and scale the success rate of the company. After all, in the end, bringing the optimized solution for the company’s benefit is what we look for!

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