Managing Outsourcing to Low Cost Centres

Overview

Outsourcing of non critical work or outsourcing to low cost centres is becoming more common. While this can bring opportunity in terms of cost and organization flexibility; it also brings added complexity. Project managers and others working in globally dispersed projects need to be aware of these pitfalls. Whether you are a buyer or supplier of services; a solid understanding of contract management is essential if you want to your projects to be successful in this complex project environment.

Prerequisites

None

Learning Objectives

Upon completion of this course; the participant will

• Be able to identify and define the key project phases in procurement management
• Be capable of selecting and managing vendors to achieve a successful outcome for projects
• Have a clear understanding of the project management knowledge areas that are vital when deal with low cost centres
• Be capable of using the essential tools and techniques to plan and manage a project that is outsourced
• Identify project risks and risk management strategies
• Have a clear understanding on communication needs; feedback and performance reporting

Who should attend?

• Individuals who need to select and manage vendors
• Project Managers who need to manage a geographically dispersed project team
• People who want to set clear project objectives for themselves and others in a business that is outsourced

Class Length

2 days

Training Syllabus

Introduction

• Introduction to Vendor Management & Outsourcing
• Outsourcing & Offshoring
• Business case
• Exercise: Fears of buyers & suppliers
• Service Level Agreements

Communication

• Communication – Types & Format
• Advantages & Disadvantages
• Virtual Teams
• Negotiation with vendors

Feedback

• Building and Managing the relationship
• Skills in giving feedback
• Exercise on feedback

Contract Types

• Contract Types
• Exercise: Contract Types
• Contract Renewal

Risk

• Risk Planning & Identification
• Procurement Planning
• Exercise: Risk Identification

Managing Risk

• Qualitative Risk Analysis
• Exercise: Qualitative Risk Analysis
• Quantitative Risk Analysis
• Risk Response Planning
• Mitigation, Contingency
• Exercise: Risk Response Planning
• Risk Monitor & Control

Project Performance

• Performance Reporting
• Earned Value
• Exercise: Earned Value: 3 sample case studies
• Incentives

Review

• Recap/Q&A session
• Transfer to work situation
• Close

PMBOK, PMP, PgMP, CAPM, PMI-SP and PMI-RMP are registered marks of the Project Management Institute, Inc.