TABLE OF CONTENTS Outsourcing, or out-tasking as some organizations call it, is a growing field. Historically, the soft areas such as custodial services, food services, and landscaping have dominated the outsourced work; nearly 50 percent of recently surveyed organizations identifying these areas. Maintenance of fleet automobiles and aircraft are also examples of areas for outsourcing.
Outsourcing is contracting for services that could be provided by the organization, if the organization had the capability and desire to perform those functions. Outsourcing has many advantages in that it is typically more economical to buy the services than provide them in-house. There is no investment in the function in terms of people, equipment, or maintenance for the outsourcing organization.
Outsourcing of core competencies is not recommended because an organization loses its capability to function effectively. Core competencies must be nurtured and grown rather than contracting for them through another organization. A providing organization has little incentive to improve on another organization's core competencies as long as the products and services are being purchased.
| Note | Outsourcing support functions is good business |
Project management services have been outsourced in several instances and the future looks promising for more outsourcing. The benefits of outsourcing project management includes improved and more economical operations.
Project management services can be improved by transferring the functions to an organization specializing in project management. This specialized company hires the right skills and uses the best of breed practices because it is...
