How will the use of outsourcing impact the way in which a project is managed?

 

Outsourcing may impact the way in which a project is managed in many ways. By outsourcing a small piece of a project or entire portions of a project, the entire scope can be altered in a very good way as far as deliverable times go. It will alter deliverable times and cost which will increases the amount of meetings with the client and the funding agent, increasing attention around the company in regards to the project portion being outsourced. Depending on the amount of cost versus time, the company may alter their interest in either continuing the project or terminating it. Typically outsourcing may reveal an inverted relationship between time and money in accordance to the project completion date requiring the project manager to re-assess the details of the project. Outsourcing can be pricey but the time constraint can be minimized because of having a contractor who specializes in the specific trade that may create a deliverable to meet the need sooner rather than later. If time is of the essence and a certain deliverable is of high priority, spending on outsourcing is likely to occur. If time is worth money, sometimes spending the extra dollar is worth it, but then the project scope and costing are affected in which the project manager must then modify the project plan to incorperate the cost and time. The project manager must then look at the project in a different perspective because now since outsourcing is involved, the project team may contribute their time to other duties involved which might shorten the entire project delivery date in a beneficial way and makes everyone look good. Sometimes a project incorporates an outsourcing agent in the plan and sometimes not. Anticipating outsourcing services by assessing risk can save time, money and ultimately show project leader integrity through effective management skills.