Over the years, project management has evolved into a discipline, complete with software including Microsoft Project that manages individual projects, as well as project portfolio-management software that is used to manage groups of projects. There’s also portfolio-analysis software, which focuses on determining the optimal mix of investments, activities and programs needed to achieve a desired outcome or business goal. Together, these tools not only help manage projects effectively, but also help to allocate resources to those projects that stand to deliver the greatest return.

A mix of specialty software vendors, such as Niku, PlanView, Primavera Systems and Pacific Edge, make up the project portfolio-management segment, while vendors such as Business Edge, Pacific Edge and ProSight make up the portfolio-analysis segment. Major players such as Microsoft, Oracle and SAP are also plying project-management software.

Yet, despite these technology tools, most companies have difficulty staffing a project-management office, and often lack the required management skills. Fifty-four percent of organizations have only one to nine project managers on staff, and 25% have 10 to 25 project managers on staff, according to a survey by the Center for Business Practices. Most companies take a minimum of five to seven years of corporate investment to develop an in-house team of competent project managers.

Companies can derive benefits by outsourcing project management, according to Bob Wourms, Director, Outsourcing Practice at PM Solutions, a consulting firm. “By outsourcing, firms can achieve a higher project success rate at a lower cost, enabling them to increase the value of project-management competency within the organization,” says Wourms.

One option is to outsource the entire project-management function by bringing in an outside firm to install, develop, manage and maintain the project office. The partner provides the project-management methodology and trains internal project staff in its use. A second option is where the outsourcing partner supplies project managers and project control personnel as needed, with the outside project team providing expertise to the internal staff. The company pays only for the outsourcing staff needed, and cultural resistance among inside staff is less likely.

Here are a few tips for getting a project-management outsourcing arrangement off the ground. Delineate the roles and responsibilities of the internal project-management office and the outsourcing partner(s). Establish objectives for project manager competency and training, project management and software development lifecycle, software for project scheduling, control, time management and integration with accounting and human-resource systems. Create long-term objectives for the project-management organization, and the role the outsourcing partner will play in achieving those objectives. Create a change-management plan to ease the transition of bringing in an outside partner and overcoming potential resistance.