Project Manager in an end user organization

Organizations like Citibank, GE Money etc which have IT as a support and enabling function typically have an IT department which employs project managers to execute projects. Most of these organizations follow 2 different models to their IT development approach with some variations to it. The first model is to have in-house development teams lead by project managers. The second approach is to outsource the technical stuff to a vendor which is managed by the project manager. Many organizations also follow a hybrid approach where in they have an in-house IT development shop and also do some out-sourcing.

In most end user organization, the IT project manager is the person responsible mostly for delivery of the project. There is usually a business project manager who controls the purse strings, since all projects are typically initiated by the business and the business funds the project. Typically, once the requirements are finalized by the business, the PM is asked for an effort estimate and schedule. The PM coordinates with the development teams (if in house development exists) or with outsourcing vendors for the effort estimate. When this comes out, the cost for the project is calculated and the budget is decided and approved. Then depending on the IT development model followed by the organization, either the work is done in-house or outsourced.

For an in house development model, mostly the development team reports to the PM for project related issues. The PM acts as the facilitator and motivator for the team, helping the team achieve the project goals within the desired budget. But for an outsourced model, the PM acts as a vendor manager and is mostly required to facilitate the outsourcing company complete the project. But in the second model, most of the delivery risk is assumed by the outsourcing company and the IT PM usually chases up and beats the vendor to complete the work!

In either cases, IT PMs in end user organizations interface with all the different departmental stakeholders for planning and execution of the project. The most important focus of the IT PM is to complete the project in time and under the given budget. Typical IT PMs in end user organizations that prefer outsourcing the development do not have to deal with the human resource angle, profit margins, knowledge sharing and associate growth aspirations. The in-house development center PM has to deal with all the above except worrying about profit margins as IT department is usually treated as a cost center rather than a profit center. IT PM have to grapple with Scope, Effort-Cost & Budget, Project Risks, Infrastructure and most important of all, the Deadline.

Thus, in a scale of 1 to 10 in the following parameters: Technical Knowledge, Process orientation, Team management, Cost management and Project management, the typical PM in an end user set-up would have the following ratings:

Technical Knowledge:    3

Process Orientation:    5

Team management:        5

Cost management:        8

Project management:     8