Originally posted by anthony.phua
Here are some questions in my mind:
1. How do u manage a vendor when u r not sure of what's right/wrong (ie getting smoked by the vendor)
2. If the project is not going to be maintained by vendors, will we (the perm staff) be capable of "running the show" (even that we've lost touch)?
3. How do u learn by not doing hands-on? (My company just send us for courses)
4. I see a lot of jobs asking for hands-on experience..so how do u add value to your resume (in the case..of vendor mgmt)?
Do allow me to try and answer some of these questions.
1. What makes a project an ideal candidate for outsourcing? A project you know very well? Or a project you don't know well and hope that you can outsource to somebody who can do it for you?
You'll be surprised to learn that the ideal candidate for a project to be outsourced is one which you have intimate knowledge of and is non-strategic - even though it's core to your organisation. Why? Cause then you can manage it. You know exactly what you want from the vendor. The vendor cannot 'smoke' you. And you're
able to manage by results. If you feel the need to manage the process, don't outsource the project. Or if you feel that the project is strategic and will provide you with that edge over your competitors, don't outsource it.
Many organisations make the mistake of outsourcing a project they have completely no knowledge of. In the process of which they'd probably hope to bring in some outside expertise on the technology. These projects will run into trouble very quickly. Cause the project manager don't know exactly what results he want / don't know what deliverables to receive. And if he did receive them, he wouldn't know what to do with them.
If you don't know if you're being 'smoked', don't outsource it.
2. That's for you to answer. What are the current skill sets of your team? What is the business direction of the company in terms of developing projects? Is the trend towards continued outsourcing? or continued maintenance In-sourcing? If it's the later, i'd suggest that your team get familiar with the project very quickly - before the warrenty period runs out. Get adequate training, start small enhancements first with the vendor - to get familiar with the product/methodology/techology. Co-maintain for a while before official handover. Your contract should also have clauses for turnover and turnback. Read'em and see what you're entitiled to.
3. You can't. Go down on your knees and start getting dirty. If you cannot manage by results, have to do it in-house or if your organisation so directs it, you don't have much of a choice. Alternatives to outsourcing? Read below. At least your company sends you for courses...
But then again, it really depends on what and how you want to learn.
You can try the hard way. Wait for the system to fail, and fire-fight. That works very well. You learn very quickly too. But lose alot of sleep in the process. The real fun comes when your company has to start paying compensation to customers and governing bodies..
4. I don't see a problem here. What's wrong with 1.5 years of project managment? Project management is a difficult hands-on skill. It's not an easy job. No project manager ever succeeded in delivering a project, on time and within budget, playing golf the whole day.

A lot also depends on what you see yourself doing in the future. Going into project management doesn't mean you'll lose touch technically. If that happens, it's your fault for not keeping up. As IT professionals it's our moral responsibilty to continually upgrade. It's part of the job. But that doesn't mean that you've got to start coding.. More importantly, as a PM, you've got to understand the issues surrounding the technology, anticipate them and manage them. It's all about migitation of risks.
There are many alternatives to outsourcing:
1) In-sourcing - Doing it yourself
2) Best-sourcing - Finding the right guys to do it. Get a consultant in. One who knows what he's doing.
3) Going with a preferred supplier/contractor
4) Build a strategic alliance with a partner company
5) Buy an off the shelf product
Issues you'll need to take into account:
1) Length of project. Is this a one-time job? Or is this something your company will want to build upon?
2) Business criteria - Is the project critical? useful? a commodity? or a differentiator?
3) Technical factors - Is the degree of integration high or low? How mature is the technology?
4) Market-based factors - Can we manage my results? Or do we need to manage the resource as well? Is it a transactional (on a need to develop, one-off basis) project or are you forming a strategic partnership with the vendor?
enjoy!
rOCh
What am i doing? :dunno: