This article discusses the importance of outsourcing in project management and outlines six best practices for successful outsourcing, including defined procedures, team building, conflict management, status updates, co-location, and fair contracts.
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Slide 1: introduction Outsourcing can be defined as a business practice where a company gets hired by another company or a specific individual for performing various tasks, provide services or handle operations that are to be executed or have been done previously by employees of the same company. Outsourcing is a common feature used by numerous organizations. Outsourcing provides ability to deliver works to people. It helps in engaging resources in various shifts which can support all the work days. Outsourcing in a project is an important factor in a project because not all the employees in a single organizationare capableof doing tasks belongingto various fields. likean organization that deals with selling products through an online website usually involve in verifying the quality and availability of the products, they would not be acquainted with the IT tasks related to the website of the company, hence it is necessary for the organization to outsource their activities related to their website management. The six practices that should be followed during outsourcing projects include Properly definedproceduresandrequirements,Extensiveteambuildingandtrainingactivities, Established processes of conflict management, Status updates and frequent review, Co-location when required, Intensive laden and fair contracts. Slide 2: Convincing people that belong to various professions, cultures and organizations for working together is tough. Successful organizations are even more careful while they select the part of work they needs to be outsourced. They prefer to outsource the works that have clear deliverables along with outcomes that are measurable.
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Communicating the requirements can cause trouble especially when foreign providers are involved in it. Example is that when contractors hire various electric firms for installing air conditioning system. Electronic firms make use of design firms in order to fabricate enclosure for various products; teams involved in software development outsource the testing of various versions of programs. The six practices that should be followed during outsourcing projects include Properly defined procedures and requirements, Extensive team building and training activities, Established processes of conflict management, Status updates and frequent review, Co-location when required, Intensive laden and fair contracts. Slide 3: Training is must for the employees who deal with outsourcing activities. Very often managers stay occupied with various plans as well as various technical challenges regarding the project and think that issues with people would work with time. Employees are needed to be trained in order to work effectively and efficiently. Slide 4: Conflicts occur when employees belonging to different culture, organization and with different perspectives come along and work together. This leads to problems in the entire system and also causes delay in delivering the overall work. Conflict occurs because people have different opinions and perspectives, this might clash and cause problems within the employees. Conflictmanagementisan importantpartofoutsourcing.Withoutconflictmanagement, outsourcing cannot be carried out efficiently. Slide 5:
This practice provides a specific forum for identifying various problems not just with the project but also with relationships in the work environment. Comparing surveys might also help in tracking if the process is lagging behind. Gaining reviews from employees would help the team to improve cooperation and team work among them. Comparing the surveys time to time would permit the tracking of areas where the work has improved. Reviews should be obtained from employees for gaining knowledge regarding their cooperation and involvement. Slide 6: Co-location reduces friction among the organizations. various smart companies rent the required accommodations so that the key personnel can work together. Face to face interact is required in order to clear all doubts or misunderstandings. This practice is less relevant for work that does not need coordination among professionals from numerous organizations. Slide 7: Instead of trying new and promising technique which might reduce costs that contractors would avoid various risks as well as apply true and tried methods for meeting contracted requirements.Faircontractsshouldbe followedbyorganizationsinorder tosatisfythe employees of both the sides. Performance based contracts where incentives are included on the basis of priorities of project are being more popular in the aspect of outsourcing. Companies realize that contracts have the ability to discourage improvement as well as innovation.