PMO Outsourcing

12-04-2009 Project Management Office Add comments

Options to improve project performance: 1) Develop internal PM competencies, or 2) Contract it to the experts. Contractors/consultants/Outsourcing. This is Knowledge Process Outsourcing (KPO) http://en.wikipedia.org/wiki/Kpo

Outsourcing Pros: No PMO setup time; Best in class tools/ dashboard/ templates; Quality PMs

Outsourcing Cons: Data confidentiality risks (pipeline projects and development plans); Tensions due to having a two tier project teams (external PMs with internal project members)

The key question is: what is it being oursourced/contracted? Is it tactical, methodology/project planning&execution processes,  and PM people (model already popular, loads of PM vendors); or Strategic PMO for Portfolio decision making? I haven’t seen data/examples of this latter case, as the risk of  lossing control of the Portfolio/Strategy seems a serious obstacle. Who is running the company? Portfolio management should always be a core competency of internal Management.

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