With many LNG projects moving from ramp-up to production and investments slowing down in Australia, the current resources market is undergoing a transitional phase.
In a tough market, it is easy for innovation, technological progress and market trends to drive project resources offshore in the hope of finding cheaper alternatives.
Jeff Collins looks at this further in his article ‘The Pros and Cons of Outsourcing Project Controls’ after speaking to companies who have outsourced varying aspects of business operations.
In the past few months, I have encountered a number of conversations around businesses outsourcing project controls teams. I often wonder if outsourcing sometimes creates more harm than good.
For the purposes of those weighing up the options and the current transitioning phase within the industry, I reviewed the pros and cons of outsourcing from a project controls point of view.
In the article, Jeff says “outsourcing project controls includes several key benefits for the business, but also possesses risks to the success or vitality of the business. Before you make the step of hiring an outside contract for project controls, keep the following points in mind.” He lists the pros and cons as follows:
THE PROS
- They can start immediately
- It can reduce resource costs
- Provides a new viewpoint of the project
- Can gain insight for future projects
THE CONS
- Potential for increased costs
- Internal resources must still be utilised
- Potential compromise of proprietary information
- Risk for a stalemate
While outsourcing teams may offer immediate benefits for businesses, is it really worth the cons listed above?
In a digital age, any compromise to company information, whether it be small or large, can break down a project in a very short period of time. Is it worth the risk?
I welcome thoughts and experiences around the topic and if you have any ways to improve the process.
Eleanor Byrne is a Consultant in Davidson Projects and Operations
