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John P. Reiling, PMP: Outsourcing and Project Procurement Management

If you have your PMP or are preparing now, you know that “Project Procurement Management” is a distinct PMBOK Guide Knowledge Area. “Outsourcing” is simply a distinct and uniquely challenging subset of Procurement. IT outsourcing has blossomed with the internet over the past 10-15 years and continues to evolve.

There have been, and often still are, huge cost differentials in favor of outsourcing. Many organizations have realized cost savings through outsourcing, but others have not realized the savings, encountering considerable hidden costs to outsourcing along the way.

The case for outsourcing has become more strategic, and less cost-driven, in recent years. Here are some important reasons for the shift that is occurring:

  1. The quality of outsourcers continues to improve, resulting in more outsourcing of higher touch, lower volume activities.
  2. Smaller companies, with fewer resources and smaller full time staffs are increasingly turning to outsourcing to strategically supplement in-house talent.
  3. Outsourcing is becoming less about labor time and material and more about specialty services such as strategic data centers.

There is much more to say about outsourcing. This is just the tip of the iceberg to a current, high impact topic! If you’d like to get a broad coverage of a full range of aspects of IT outsourcing – and earn PDUs – see below.

John Reiling, PMP
PM Training Online

See our Outsourcing and IT Project Management training page to find online PDUs training and take your practical understanding of IT outsourcing to a new level.


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