The overall statistics on the failure rates of projects are frightening.
When examining the results of outsourced projects, things don’t look much better. Aberdeen reports that 30% of web development projects fail, and the number rises to 50% when using offshore developers. They delved further into the root causes of the failure rate:
While much attention has been given to the challenges faced when outsourcing IT projects, the same issues occur in any outsourced SOW-based project.
Over the past few years, as companies have placed more focus on money spent on outsourced project services, there has been a movement to increase control over that spend. Many Procurement organizations have been charged with establishing enterprise-wide controls. In response, programs initially designed to manage the use of agency-supplied temporary workers have been expanded to include the non-employee labor used to staff project services. Specialized Vendor Management Systems (VMS) have been developed to support the management of project-based resources and spend, often tying directly to traditional project management software.
A solid blueprint, combined with significant advanced planning, is necessary to deal with the complexities associated with managing project resources and spend. Success is dependent on:
Do you know how much money you spend annually on outsourced projects? For most large companies, the number is generally 4-5 times greater than the amount spent on traditional contingent labor. Management of the associated resources and spend is critical to your success.
To learn more about the best practices for establishing a successful project services management program, join DCR and Chris Dwyer of Ardent Partners in a webinar, “Secrets to Mastering the Art of SOW Management”, to be held on August 26th at 1 PM ET.
Mail (will not be published) (required)
+ 9 = eleven
Thanks for Subscribing to DCR Blog.