Research Reveals Upward Trend in Project Management Outsourcing
A survey conducted by the Center for Business Practices (CBP), the research arm of project management consultancy PM Solutions, reveals an upward trend in the number of Global 2000 companies that are turning to project management as a cost-effective, long-term solution. In addition, the survey found that more Global 2000 companies are using project management consultants and augmented staffing to complete project implementations.
The survey, "Project Management: The State of the Industry," polled 1,000 project professionals and senior-level executives representing Global 2000 companies in industries including manufacturing, healthcare, and information technology.
According to survey respondents, 39 percent of the companies currently outsource project management functions or are considering it. More than half of the responding companies use consultants for project management, primarily for managing projects (66 percent) and augmented staffing (61 percent).
In addition, the study found that the most common functions currently outsourced are project delivery, project management training, and complete project management (at 40.7 percent each). See the accompanying graph for a complete breakdown of outsourced functions.
"The truth is that most companies do not have a large enough in-house staff to successfully accomplish project objectives," said Jim Pennypacker, director of the CBP and former head of the knowledge and wisdom center for the Project Management Institute. "By outsourcing project management functions - either entirely or through the use of consultants or augmented staffing - companies can achieve a higher project success rate at a lower cost."
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