One of our most popular services right now is to provide PMO as a managed service, essentially organisations are more and more frequently outsourcing the whole PMO function.
We have successfully delivered PMO as a service for many large organisations over the past 10 years, and in the current economic climate where businesses are looking to reduce overheads while amping up performance it has never been more popular.
Organisations can sometimes initially be sceptical about the benefits of an outsourced model but by entrusting project management functions to external experts, organisations can really focus on their core business activities while benefiting from specialised knowledge and streamlined processes. We have been talking to our customers who have been utilising this model, and we’ve put together 10 reasons why outsourcing the PMO is the best way to build a high performing team.
1. Instant Access to Expertise
From Day 1 an outsourced PMO provides access to a pool of highly skilled and experienced professionals. These experts bring a wealth of knowledge, best practices, and industry-specific insights to the table. Not only do you get access to individual expertise, but also organisational expertise including a library of templates, processes and other artefacts that mean the team is adding value as soon as they hit the ground. We can also use our own tools and technology solutions if required. By leveraging this specialist expertise, your organisation can improve project planning, execution, and delivery, ultimately leading to better project outcomes.
2. Cost Savings
Maintaining an in-house PMO can be a costly endeavour. By outsourcing, you eliminate the need to recruit, train, and retain a dedicated project management team. Additionally, you can avoid expenses associated with infrastructure, software, and ongoing maintenance. Outsourcing allows you to convert fixed costs into variable costs, providing flexibility and potential cost savings down the track. In a competitive labour market, you can make finding the right person for the job, someone’s else’s problem and just focus on outcomes.
3. Scalability and Flexibility
Businesses often face fluctuations in project volumes and resource requirements. Outsourcing your PMO allows you to scale up or down based on your specific needs. Whether you require additional resources to handle peak project loads, specific skills or tools, or want to streamline during quieter periods, outsourcing offers the flexibility to adapt quickly and efficiently.
4. Focus on Core Business
Project management may not be your organisation’s core competency, but it is crucial for successfully delivering organisational strategy. By outsourcing your PMO, you can redirect your internal resources towards core business activities, enhancing productivity and efficiency. This focus on core competencies enables your organization to concentrate on strategic initiatives, innovation, and putting the customer at the centre of what you do.
5. Enhanced Risk Management
Managing project risks is a critical aspect of successful project execution. An outsourced PMO brings specialised knowledge and proven risk management methodologies to the table. High performing PMOs are fundamental to good project and program risk management. They can proactively identify potential risks, develop mitigation strategies, and monitor risks throughout the project lifecycle, providing an additional first line of governance control point.
6. Improved Resource Allocation
Resource management is a constant challenge for many project delivery organisations. Experienced PMO teams can provide you with a number of options to better understand your project resource supply and demand, highlighting pain points on specific projects and bottlenecks for specific skill types.
7. Access to Advanced Tools and Technologies
Staying up to date with the latest project management tools and technologies can be a daunting task. Outsourcing your PMO to a specialist team ensures access to state-of-the-art tools, software, and technologies without the need for significant upfront investments. These tools streamline project workflows, facilitate collaboration, and improve overall project visibility, resulting in higher project success rates.
8. Global Reach and Market Knowledge
In today’s interconnected world, many businesses operate on a global scale. Outsourcing your PMO can provide you with access to global best practice standards and thought leaders. This access enables your organisation to ensure your business is at the growth edge of project management practices.
9. Streamlined Reporting and Communication
Effective communication and transparent reporting are crucial for successful project management. An outsourced PMO brings standardised and proven reporting frameworks, communication protocols, and performance metrics to the table. This enables better visibility into project progress, timely issue resolution, and improved stakeholder engagement. Streamlined reporting and communication foster collaboration and support informed decision-making.
10. Continuous Improvement and Innovation
Outsourcing your PMO encourages a culture of continuous improvement and innovation. External professionals bring fresh perspectives, broad experience and the ability to measure improvements through KPIs and service levels.
Embracing an outsourced PMO model is not just a practical choice; it is a strategic move that can revolutionise your project management practices. By partnering with a reputable and experienced external provider like Pledge Consulting, you can tap into a wealth of specialised knowledge, skills, and resources that are typically not available internally. The result is a seamless and efficient project management and governance process, driven by experts who are dedicated to your success. Outsourcing your PMO allows you to leverage the collective wisdom and experience of professionals who have worked across various industries and have a deep understanding of what it takes to deliver successful projects. With their guidance, your organisation can streamline operations, overcome challenges, and achieve greater project success rates.
Outsourcing the PMO can be a strategic decision with numerous benefits for your organisation. From accessing specialised expertise and cost savings, to scalability, flexibility, and enhanced risk management. Outsourcing could empower your business to focus on the things that matter the most. Are you ready to take a step towards elevating your project management capabilities through outsourcing the PMO as a Services (PMO aaS)?
Talk to us today for more information and case studies.