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Deciding whether to go in-house or completely outsource your PMO will depend on your project scope and resources.
In-House PMO
In-house PMOs can be effective given that key staff are available on-site and open to queries at every step. Their familiarity also means they can bring institutional knowledge and industry expertise to the table.
Reasons For
- In-depth knowledge of company culture
- In-depth knowledge of operations
- Industry experience
- Convenient delegation of internal resources
- Reduced need for non-disclosure agreements
Reasons Against
- Vendor dependency
- Cost
Outsourcing Your PMO
Many businesses need to run projects to support their operation but don't deliver their end product or service through the project. Therefore, creating a PMO as the small project grows may be beneficial to ensure compliance and governance standards.
However, when you consider the work a PMO accomplishes, it may not align with your company's mission. You may need to hire people with specific skills and people that are different from your business objectives. It may also feel restrictive if there are not enough career options.
Outsourcing all PMO functions may be smart when you do not need PMO skills and resources as part of your core business offering.
The amount of time that PMO functions are required also plays an important role. When you take on a large, one-off project for a customer that you're sure won't be repeated, such as a public construction project or a conference, you might want to hire individuals to handle a PMO without spending a lot of time recruiting.
Reasons For
- Objectivity and separation of company culture
- Reduced costs
- Fresh outlook on marketing strategies
- Flexibility and access to resources
- Technical focus on advancing project skills
Reasons Against
- Reduced knowledge of branding
- Barriers to communication
- Difficulty in establishing leadership
- Barriers in access to proprietary information
- Absence of relationships or company morale
