Project Management Institute

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In our age of austerity, organizations are constantly seeking new ways to reduce costs and improve efficiency. It's increasingly common for departments across an organization to be gutted and then supplemented by some sort of outsourcing. This article explores how outsourcing project management office (PMO) competencies to managed services can increase efficiency and reduce costs, as long as the organization selects the right vendor. It details how PMOs use outsourcing, and it examines how managed services are most often used by large, complex organizations with PMO hierarchies. It summarizes vendor selection and notes how the PMO is charged with the responsibility of managing the vendor in accordance with an agreed to set of service-level agreements (SLAs) and key performance indicators (KPIs). Next, the article examines a vendor engagement model noting that it can involve outsourcing specific PMO competencies such as project methodology support or consolidation of risks, assumptions, issues and dependencies
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