A possible product to outsource in this case would include employees or IT or services. According to White& James (2017), Outsourcing is the practice to acquire resources such as human or monetary, technological capital and many other factors from outside the company. There are different factors to consider for a company that is thinking about outsourcing resources.
Project managers get to outsource resources so that they can benefit the projects in various ways. According to White & James, (2017), outsourcing increases the competitive advantage to the supply chain. It is a method that is used to leverage skills and knowledge along the supply chain. There is also increased access to facilities and capabilities that would not be accessible or affordable to the company in normal circumstances. The project manager can improve focus on the core activities of the project. It is a way of freeing up the project team by getting extra hands competent and up to the task. There is increased efficiency when the project team chooses a company that specializes in the services or the process that they are required to help in the project.
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However, some cons come with the process of outsourcing. For example, when the project is ongoing, and a vendor is unable to supply services or goods, it might take time to vet another company and contract them. Through outsourcing, the project may fall behind the expected time or the new company fall below the expectation thus drugging the entire project. Confidentiality of the project processes and security of the whole project may be at risk when the company in charge of the project start changing suppliers. In some cases, the contract might be too rigid for the project management team to be able to contract or accommodate change. A new company/vendor, in this case, might bring friction in the management process making the project difficult to manage. There is also a risk of instability in the process of management for example if the outsourcing firm goes out of business ( Weidenbaum, 2005) .
To minimize the adverse effects of outsourcing in project management the project team needs to consider the following factors. Tadelis (2007), mention that when outsourcing a company must find the business reputation of the outsourcing company. It is good to have a proper background check on the company and especially the history of honoring a contact and finishing work in time. It is a way of trying to minimize the extra cost of looking for another company to fill in the gap and wasting resources and time. It is good to consider the technology/innovation, skills, and knowledge of the company. The company capacity is an essential factor to consider the eligibility. It is also good for the project team to take a calculated risk before contracting a new company as the vendors. It is also the responsibility of the team to ensure that they consider collaboration and communication with the company. Openness in project management is a vital component that ensures the running of the project is smooth.
Some of the considerations for outsourcing would include Ease of communication which requires communication and collaboration, control of core competency a factor that needs the element of knowing personal needs ( Anthes, 1997) . Expertise to perform the work whose element is competence, the speed of change needed whose element is a time factor, Trade-offs between cost and benefits whose element is cost factors, and ability to monitor performance whose element is capable of managing the project (Tadelis, 2007).
References
Anthes, G. H. (1997). Outsourcing the pros and cons. Computerworld , 31 (14), 7.
Tadelis, S. (2007). The innovative organization: Creating value through outsourcing. California Management Review , 50 (1), 261-277.
Weidenbaum, M. (2005). Outsourcing: Pros and cons. Business Horizons , 48 (4), 311-315.
White, R., & James, B. (2017). The outsourcing manual . Routledge.
