Does outsourcing of PMO Functions improve Organizational Performance? Qualitative study evidence from a case study in South Africa

Abstract

This paper presents a qualitative case study, part of larger study that includes a quantitative study as well to investigate and analyze: first, the reasons and impact of outsourcing PMO functions namely (project delivery, project manager development, project methodology and tools, project portfolio management) for organizational performance, and second, the role of governance and standards in outsourcing and performance relationship. The research is done through multiple case studies representing different industries and geographic locations. The case presented in this paper is conducted in the mining industry in South Africa. The results indicate that outsourcing of PMO functions have contributed to improved performance.

Introduction

Although there is substantial literature on the topic of outsourcing and project management, the PMO attracts limited attention. Similarly outsourcing of project management office functions has received no attention in the literature; therefore, there is a practical and theoretical motivation to study outsourcing PMO functions especially in tough economical times were organizations seek not only cost savings, but maximizing performance.

Over the decade, outsourcing has received increasing research attention in response to the increased demand on outsourcing as means for organization to compete and be effective in today’s market challenges. (Mclvor, 2008).

One reason for creating a PMO may be to guarantee consistency of approach across projects. The PMO establishes project management methods, defines and implements processes and procedures, provides project structure, and deploys supporting systems and tools, as well as provides project manager development and training (Bates, 1999).

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