Document Type

Closed Project

Publication Date

Spring 2004


Dragan Milosevic

Course Title

Capstone Project

Course Number

EMGT 589/689


Technological innovations -- Management, Project management -- Contracting out, Gloabalization -- Effects on project management, Virtual work teams -- Management


The outsourcing of products and services by corporations, once seen as a short-term fix for managing peaks and valleys in customer demand, is now considered to be a strategic tool. It is, in fact, becoming necessary for both large and small companies to survive and remain competitive. In addition to manufacturing, many professional functions, including software and hardware engineering, management, and information technology are being outsourced to foreign companies more and more frequently. Due to the widespread availability of local (and usually much cheaper) pools of talented professionals in foreign countries, CAD (Computer Aided Design) tools and the Internet, it is no longer necessary for professional resources to be physically co-located within a corporation. As projects involving new and unique technologies and processes become more and more globally outsourced and the organizations and individuals performing the various tasks within the projects become more interdependent, it will generally become necessary for the companies that own these projects to implement some form of project management (PM). Often, with outsourced processes, it is more practical to set up a PM office at the contractor’s facility to manage projects within projects.


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