Business Strategy

Outsourcing Project Management Services: Making It Work for IT or Digitally Outsourced Projects

Article Details

Pub. Date	: Dec' 2019
Product Name	: The IUP Journal of Business Strategy
Product Type	: Article
Product Code	: IJBS21912
Author Name	: Nikhil Garg, Mohit Jain
Availability	: YES
Subject/Domain	: Strategic Journals
Download Format	: PDF Format
No. of Pages	: 24

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Abstract

The purpose of this study is to understand the motives behind outsourcing as it is becoming inevitable for reasons like cost reduction, operational efficiencies, etc. Further, the study investigates the pitfalls of outsourcing as well. The information for this investigation includes a few specific cases of various companies that are outsourcing their project management services. The information is collected from various papers, annual reports and relevant journals. The reasons motivating organizations to outsource are also changing permanently, with companies increasingly outsourcing to achieve customer-centricity and unlock new technological capabilities, rather than simply to cut costs. This study analyzes factors that are expected to make outsourcing market more competitive and collaborative as both buyers and service providers are heavily in favor of basing contracts on outcomes rather than outputs, choosing to share risk to reap greater rewards.

Description

Outsourcing has become a straightforward and price-effective technique that is employed widely in today's digitization world. The developed countries always prefer outsourcing their business processes to developing countries like India, China, etc.

Outsourcing is a method in which firms and organizations give work to the outside vendor. Any work process which can be handled from the outside location of the organization is outsourced. This method is also known as offshore outsourcing. Offshore outsourcing permits the organization to get top quality services at cheap operational cost.