The Pitfalls of Outsourcing

  ProjectsAtWork  

A new global survey indicates that many outsourced projects are jeopardized by poor risk management. Pervasive challenges include a lack of foundational skills and processes, requirements gaps, and vendor delays.

Results of a new global study reveal the concerns, effectiveness and best practices in risk management by organizations that outsource projects. Of the 95 percent of organizations that buy, provide or both buy and provide outsourced services and functions, fewer than half are able to effectively manage risk of outsourced projects. 

Managing product or service quality is the top outsourcing risk to organizations, identified by 70 percent of survey respondents. Survey respondents included contractor managers, subcontractor buyers, project managers, senior executives, and key decision makers in outsourcing from a wide range of industries and government in North and South America, UK/Europe, Asia/Pacific, the Middle East and India. The study was conducted by ESI International.

“The ubiquity of project outsourcing creates opportunities for, and demands on, organizations to better develop and refine their outsourcing competencies,” said J. LeRoy Ward, PMP, PgMP, executive vice president, Product Strategy and Management, ESI International. “The results of ESI’s global survey indicate areas for greater performance,…

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