Feasibility of In-house vs. Outsourced Project Management in Public Facility Implementation
Holopainen, Tarja (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022060214809
https://urn.fi/URN:NBN:fi:amk-2022060214809
Tiivistelmä
The Urban Environment Division of the city of Helsinki implements several smaller construction and renovation projects annually. The project management function of these projects is undertaken either by the city personnel or hired project management consultants. The objective of this thesis was to establish a concept to evaluate the feasibility of internal versus external project management, since a systematic approach to analyze project management between internal and outsourced project managers was missing.
After setting the objective, the study started by searching ideas on evaluating project management feasibility from relevant literature in order to find a suitable evaluating concept. However, a suitable ready-made concept was not found. Instead, three parameters were discovered to be suitable for both internal and external project management. The parameters were cost, expertise, and flexibility, which formed the conceptual framework. The approach of the case organization’s project management was studied with the help of the conceptual framework by exploring two examples implemented during past years, one executed by internal and other by external project managers. An initial concept was adjusted by improving weaknesses found in studied examples and by interviewing stakeholders. The initial concept was validated by simulating it with completed projects. For this study several project managers of the case organization were interviewed, as well a couple of team leaders of the project units. Internal databases and informal conversations were used for information gathering as well.
The outcome was a concept in the form of an excel spreadsheet for evaluating project management choices between in-house and outsourced project management functions before the implementation for the small projects. The in-house project manager is the appraiser for the project when evaluating cost, expertise, and flexibility aspects in project management.
After setting the objective, the study started by searching ideas on evaluating project management feasibility from relevant literature in order to find a suitable evaluating concept. However, a suitable ready-made concept was not found. Instead, three parameters were discovered to be suitable for both internal and external project management. The parameters were cost, expertise, and flexibility, which formed the conceptual framework. The approach of the case organization’s project management was studied with the help of the conceptual framework by exploring two examples implemented during past years, one executed by internal and other by external project managers. An initial concept was adjusted by improving weaknesses found in studied examples and by interviewing stakeholders. The initial concept was validated by simulating it with completed projects. For this study several project managers of the case organization were interviewed, as well a couple of team leaders of the project units. Internal databases and informal conversations were used for information gathering as well.
The outcome was a concept in the form of an excel spreadsheet for evaluating project management choices between in-house and outsourced project management functions before the implementation for the small projects. The in-house project manager is the appraiser for the project when evaluating cost, expertise, and flexibility aspects in project management.