Outsourcing Project Management: False concerns

Software development is a complex process that requires not only highly skilled developers but someone who can manage the whole process – Project Manager.

Outsourcing is becoming more and more widespread and popular. It is the reason companies started to consider outsourcing project management as well. Outsourcing and project management together bring doubts to people. Many wonders if it is possible to properly manage a team remotely. Except for remote project management, there are many other concerns.

All of those concerns are just myths, and there are solutions for each of these concerns. In this article, we will consider outsourcing project management’s concerns and how to cope with them. Moreover, we will define what advantages outsourced project management has.

Outsourcing in a nutshell

A few words about outsourcing, what it is, and what types of outsourcing exist.

First of all, outsourcing is a beneficial type of cooperation that opens for companies almost endless opportunities. You can find specialists with the exact skills you need around the world or in nearby countries.

There are three types of outsourcing:

• Offshore outsourcing means you hire a specialist from countries far away from your country or even different continents.
• Nearshore outsourcing is hiring specialists from nearby countries, basically neighbors (for example, you are from Germany, and you are hiring a team from Poland);
• Onshore outsourcing is outsourcing in your country. It may be a different region or city, but it is within the borders of the country you are in now.

After confirming the type of outsourcing, you should choose a pricing model that fits you. There are many of them, and we have chosen the main pricing models you can choose:

• Fixed Price. It is a classical pricing model when you pay for a month. That’s why you must define all the details of cooperation, such as the scope of work, agreed price, milestones, etc. The main pros of fixed price are that you can predict the project’s price, but this model lacks flexibility.
• Time and Materials. It is the opposite of the previous fixed-price pricing model, as you pay for particular hours and materials. The most valuable in this model is flexibility, but some clients can experience difficulties predicting the final price.
• Mixed model. As you understand from its name, this pricing model is a mix of two models. In this case, we have all the best from fixed price and time and materials models. It saves costs but requires strict requirements and thorough management.
• Pay per unit. You can save a lot of money by using only the services you exactly need, but there is no guarantee that you will have the services when you need them as there is no long-term contract.

False concerns about outsourcing project management

Now it is time to consider concerns and how to cope with them.

1. Lack of control. It is the first and most obvious concern that one can have. Project management controls the project daily. Companies can be afraid that remote can negatively impact the development process management and project’ outcome.

The solution: outsourcing project managers can control the development process with special tools. Moreover, project managers always confirm with clients all the important decisions, so the client is aware of all the changes and implementations. In terms of working with the development team, the project manager conducts regular meetings with the team and writes reports that state development progress.

2. Poor communication and its challenges. The first problem that causes outsourcing is a communication issue. The problem is that the in-house team works in the office, and the project manager is remote.

The solution: project manager can discuss with the client’s team and choose the fittest tools for communication. Often the team and project manager are from different time zones. For comfortable communication, both sides can discuss and choose the best time for both to be in touch.

3. Low quality of the product. Each company has its standard of quality. How can it be sure that the development process goes according to its standard?

The solution: during the discovery phase, PM and BA define all the goals and functionality of the project. Therefore, the project manager knows what the product must be.

4. Poor security. The necessity to provide outsourcing PM confidential information may bring doubts to companies. What if an information leak happens?

The solution: the best and most time-proven way to make your cooperation safe is signing an NDA (non-disclosure agreement). In addition, you can use secure access to the client’s resources.

Benefits of outsourcing project management

Except for the solution for the most spread concerns, outsourced project management also has a lot of benefits.

1. Expanded choice of professionals

Outsourcing is a worldwide pool of specialists you can hire. It is common when projects require a unique set of skills that you may not find easily in your area. Using the most comfortable outsourcing type and pricing models, you can hire the fittest project manager for your project. It drastically increases the success of your project.

2. Reduced costs

The cost-effectiveness of outsourcing approaches is well-known, and it is one of the reasons why companies choose outsourcing. Hiring specialists from eastern Europe is more profitable than hiring specialists from the USA or western Europe. More important here is that the quality of work stays the same. For a lower price, you get the same high-quality work.

3. Solid experience

Outsourced project managers work with different companies around the world. It allows them to gain experience working on various projects and solving numerous issues. Thanks to that, outsourced project managers have a new view of the working process, problems that can emerge, and approaches to solutions.

Outsourcing project management is the best way for companies to increase the productivity of the software development process, get well-experienced specialists and save budget. All the widespread concerns about outsourcing project management are not a barrier and have simple solutions.