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Drawbacks of Project Management Outsourcing

by: Sarah Joson

Monday, June 8, 2015 |

We have previously considered the potential advantages of project management outsourcing. But what about the disadvantages and risks that come along with it? CIO.com shares four common risks in project management outsourcing.

1) Relationships and overall office environment
Outsourcing can indirectly affect the office environment of a company. There will be misunderstandings and disagreements within the group since the internal team may feel threatened or disregarded. This can become a problem in the long run as it will likely affect the execution of the project, and could lead to more problems. This does not mean that the outsourced party and internal staff will not work out their issues, it just means they have to exert more effort in making the partnership work.

2) Not being familiar with the business
Whether we like it or not, the information that the internal team has gathered over the years is crucial to the development of strategies and solutions. Moreover, the internal team has more access to company information than outsourced providers that often have to go through a long process of requests and approval.

3) Data security and breach
Sensitive information is also at risk when companies deal with external providers. One way to avoid data security problems is to clearly define policies and processes, as well as safety measures in case a security breach occurs in the future.

4) Scope of responsibility and accountability
Outsourced project managers and service providers are not internal stakeholders. Because of that, most people assume that they are not reliable or do not own up to their mistakes and responsibilities. By having a solid agreement on expectations and goals, which span from professional conduct, ethical behavior, and scope of the project, you can immediately jump into action in case they go overboard or passive when it comes to performing their tasks.

There are numerous vendors offering project management services. For buyers, make sure that you and your outsourcing partner’s goals are aligned. The process should add value to your growing business rather than drag it down.

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