Pages

Thursday, August 19, 2010

Insourcing: What You Need to be Successful

Times are tough and money is tight. Decisions to pay anywhere from $100 to $300 per hour for outsourced project managers are being met with scrutiny. Lately, we’re running into more and more facility owners who previously outsourced their program management and construction management activities have decided to insource. There is an argument to be made for either side as to why one is better than the other; both outsourcing and insourcing are good methods.

For those companies and organizations that are used to writing a check and letting experts deal with everything, the transition to insourcing can be daunting. The best way to ensure success is to start with the right people in place and then empower them with proven processes (more on this in a later post) and construction management software system to enable the process and manage all the (otherwise overwhelming) details.

When researching a project management system that best meets your needs, look for a provider that has many other similar clients. There are so many different kinds of project management software out there. If you find a provider with a client list that is similar to you and your company it lowers your risk. First, it’s likely the provider has tailored the software to meet the unique needs of your market, based on feedback from those other clients. Second, when you buy software that is focused on a particular niche, you get instant knowledge and best practices by accessing a whole community of your peers. This in turn can contribute to, or provide new ‘proven’ processes where you benefit from the collective knowledge of those who have gone before you.

The second point is especially critical if you are insourcing. Having access to a network of peers that are already leveraging the software to meet very similar construction objectives is worth as much or more than the software itself. After all the technology by itself does not provide the benefits – it’s what you do with it that generates the real benefit and value.

If time is of the essence, consider a software-as-a-service (SaaS) product. Implementation will be much faster, and it’s not unreasonable to expect this type of system to be implemented in days and weeks, not months or years. As soon as it is operational, you’ll begin to see a return on your investment.

In short, Insourcing doesn’t have to be overwhelming but consider having the right people in place and the right tools as a must.