What is Outsourcing in Project Management?

Over the last generation, there has been a seismic transformation in business. Working one's way up the corporate ladder at one business, eventually earning the proverbial gold watch, is a thing of the past.

Careerists have been forced onto a different path rather than halted. It's more normal these days to jump from one company to the next, loyal only to your career growth. Most firms that have outsourced contractors to boost their bottom line and increase efficiencies may say the same thing.

As learned whilst preparing for the portfolio management certification, outsourcing is a contentious issue. It's become a political issue, as many industrial jobs that were formerly based in the United States have subsequently been dispersed around the world. However, when viewed objectively, outsourcing becomes a strategic decision with benefits and drawbacks.

Are you or your company considering outsourcing? It could be a wise decision if you have the skills to handle it, or it could be a poor one depending on your company's structure and culture.

What Is Outsourcing?

Let's define the phrases we're using, even if they seem self-evident, just to make sure we're all on the same page. Simply said, outsourcing is the process of hiring help from outside of one's firm. To handle a component of your business, you could hire a service provider, consultant, freelancer, or even an agency.

Outsourcing has undoubtedly been for as long as there has been employment, but it rose to prominence as a national discussion topic during the Great Recession of the late 2000s. Many businesses, concerned about their bottom line, hired offshore staff. Even entire divisions, such as call centers, were eliminated in favor of outsourced labor from other countries.

Of course, outsourcing does not have to take place beyond national borders. We outsource on a regular basis, such as when we go to the copy shop. It saves us the money and hassle of having to buy or lease a machine and all of the associated supplies.

There are a few things you should ask yourself before deciding whether or not to outsource your work. Will this help me save time? Will this aid in cost-cutting? Will the contractors be able to do a better job? Some jobs, such as data entry, are excellent for outsourcing since they are essentially busy work.

If there are jobs that aren't in the team's or organization's wheelhouse, such as financial research or website creation, outsourcing them could be beneficial. There's also research, social media participation, content creation, and so on. All of this, however, is contingent on the organization and the spectrum of in-house talent.

Need more insights on the same? Take on the PfMP certification today!