Can the role of an IT project manager be outsourced?

A third-party IT project manager can be hired for specific projects to focus on a number of tasks including staff management, project creep and risk management.

How many IT projects lead to failure? Although it is hard to put an exact figure on such a metric due to what different businesses class as a failure, research has shown this figure could be as high as 83%.

What constitutes a failure could include the project running over time or budget, the project failing to meet its objectives, or the outcome not delivering the expected ROI.

According to the Standish Group's annual CHAOS 2023 report, 52.7% of technology projects end in partial or total failure. This was based on the analysis of 50,000 projects globally. The study also found that the average cost overrun for IT projects is 189%; meaning the average IT project costs nearly twice as much as originally estimated.

The report cited these as the most common reasons for IT project failure:

• Lack of alignment between business and project objectives
• Poor communication and collaboration
• Unrealistic expectations

Click here to read our 19 reasons why IT projects fail.

Hiring an IT Project Manager is one of the most effective ways to prevent IT project failure.

IT Project Manager Vs Project Manager

The roles of an IT Project Manager and Project Manager are similar in that they are both responsible for the planning and execution of a project. They are responsible for leading and managing a team to deliver a project on time, within budget, and to the required quality standards.

According to time management statistics, project managers are crucial to project success. Projects are 2.5 times more successful when PM practices are implemented, and organisations that invest in PM practices waste 28 times less money.

A Project Manager specialises in budgets, resource allocation, timelines and dealing with challenges that occur along the way. Their skill sets are more centred around problem-solving, communication and organisation.

Whereas an IT Project Manager is typically responsible for creating and implementing detailed technical specifications, managing technical teams and developing technical policies and procedures. This requires high-level technical knowledge and a wide range of IT skills.

IT Project Managers come from a technology background and manage IT-focused projects within a business. They combine their IT expertise with their leadership and organisational skills.

They both play a key part in the delivery of a project, however having a technical specialist managing your IT project improves the communication between stakeholders and the technical teams and provides more focused planning around the technical aspects of the project.

Why Companies Outsource IT Project Management

Project Managers are in high demand worldwide, even more in demand are IT Project Managers. Because of the high costs involved in IT projects, companies look to project managers to avoid project failure and ensure a high ROI as possible.

Here are 10 benefits of hiring an Outsourced IT Project Manager:

1. Increases in-house efficiency
2. More cost-effective
3. Reduces project costs and budget
4. Reduced risk of scope creep
5. Reduced risk of project failure
6. Turns ideas into achievable objectives
7. Internal teams gain more knowledge
8. Impartiality
9. Increased flexibility
10. Improved collaboration

Let's take a look at them in some more detail:

Increases In-House Efficiency

IT Project Managers come packed with technical expertise and information. Their technology knowledge and experience in thorough technical planning means your in-house technical teams will have all the information and specifications they need to fulfil the project.

More Cost-Effective

With higher demand for IT Project Managers, wage demands naturally increase. Outsourcing the role saves money on hiring costs, overheads, sick pay and all other associated costs. Agile outsourcing means you only pay for the resources you need.

Reduces Project Costs and Budgets

55% of project managers cite going over budget as a reason for project failure. With organisations wasting 28 times less money when investing in PM practices, it’s clear that investing in a good Project Manager is crucial for keeping project costs down.

Reduced Risk of Scope Creep

Scope creep happens when more requirements are added once the project has begun. It pushes back deadlines and adds to the budgeted costs. One survey found that 92% of projects failed due to a lack of scope creep management.

An IT Project Manager will regularly communicate with stakeholders to ensure that everybody is aligned with the project outcomes and that every eventuality is planned for. They will also clearly define the project scope, outlining agreed timelines, budgets and deliverables. An IT Project Manager will closely monitor change requests and assess the impact of the requested changes on the project deliverables, timeline and budget.

Reduced Risk of Project Failure

A lack of clear goals is the most common factor for project failure (37%). With an experienced professional at the helm playing the lead role in planning, executing and controlling the project, your IT investments are more likely to succeed.

Turn Ideas Into Achievable Objectives

IT Project Managers have a unique set of skills to be able to turn stakeholder business ideas into technical requirements. By conducting thorough analysis and planning, they outline all business requirements and translate them into project deliverables alongside their associated timelines and costs.

Impartiality

An outsider's perspective in project management is more important than you might think. An external Project Manager has experienced projects across a wide spectrum, giving them a wider understanding of the successful running of a project.

Increased Flexibility

Outsourcing the management of your IT project gives you more flexibility to scale up or down depending on the changing needs of the business, risks and challenges. This can be helpful for businesses with fluctuating project demands.

Improved Collaboration

Poor collaboration and communication between technical teams and stakeholders can cause unfulfilled requirements and scope creep. An outsourced IT Project Manager will bridge the gap between your technical teams and stakeholders. They can translate technical jargon into a language that all stakeholders understand.