How to Overcome Resourcing Challenges for Successful Global Project Delivery?
With collaborative technologies making it easier than ever to connect with people worldwide, global project management is becoming increasingly popular. However, global project delivery possesses several roadblocks, such as time zone disparities, socio-cultural and linguistic differences, work-style issues, etc.
Amongst these, the resourcing challenges like improper allocations, ineffective scheduling, over/under utilization, burnout, etc., are the most critical ones that can derail project delivery.
Therefore, global project managers should identify and manage these different employee-centric challenges ahead of time to ensure successful delivery.
This blog explains how Saviom’s resource management solution can help overcome workforce challenges in global project delivery.
1. Global Projects: Definition and different types
As the name depicts, a global project involves employees or members distributed across multiple countries around the world. For instance, if a project is taking place in the USA, but the team members are from Spain, France, Sydney, etc., it would qualify as a global project.
The different types of global projects are as follows-
A. Onshore/onsite delivery model
When both the firms that manage the project and the employees working on it are from the same location/site, it is known as the onshore/onsite delivery model. It enables organizations to work with native teams without any language or socio-cultural barriers.
B. Offshore/offsite delivery model
In this model, the firm that handles the project is from one location, and the project team is from another place, mainly a low-cost area. As a result, it helps organizations procure cost-effective resources from different regions, reducing the chances of budget overruns.
C. Nearshore delivery model
When the organization heading the project is in one location, while the project team is from a different country but within the same continent, it is called a nearshore delivery model. In addition to saving money, nearshore outsourcing helps managers to have more regular site visits than offshore outsourcing.
D. Hybrid/dual delivery model
The hybrid model combines onsite, offshore, and nearshore delivery models. Here, organizations leverage resources from within their countries/continents or outsource the work to low-cost countries. This model makes it very flexible for firms to hire cost-effective resources according to their requirements, thus managing project costs.
Now that we have a clear understanding of global project delivery let’s look at the various resourcing challenges associated with it.
2. Resource-centric challenges in global project delivery
Here are five workforce challenges that can derail global project delivery if not addressed cautiously:
2.1 Lack of real-time visibility into global resources
When managers assign employees from multiple locations for global projects, they may not have all resource-related information on a single platform. This can be due to the usage of outdated tools and the absence of a centralized system. As a result, it creates silos of information, leading to data inconsistency and redundancy.
Further, due to a lack of clear visibility into important resource information like skills, competencies, schedules, etc., global managers may not book the right resources for suitable projects. This can result in numerous adverse effects like- inefficient allocation, under/overutilization, billable losses, and more.
2.2 Scheduling conflicts due to time zone differences
Time zone difference is a serious challenge for global project managers. Therefore, if this is not taken into account beforehand, resources may be inappropriately scheduled, resulting in double bookings, overloading, and burnout, thereby decreasing productivity.
For instance, the project site is in Sydney while the team is based in UAE, and the time zone difference is approximately 7 hours. Due to a lack of real-time access to resource schedules and availability, managers might schedule employees from UAE to work on the Sydney project. Thus, UAE-based employees will have to adjust their schedules and working hours to Sydney time. This will lead to exhaustion, resulting in low morale and unplanned attrition.
2.3 Inability to track utilization levels of global resources
Monitoring resource utilization is essential to ensure high productivity and profitability. However, it becomes an uphill task for managers to track the utilization levels of global employees. It is due to factors such as the lack of real-time updates on resource bookings, time zone differences, network limitations, etc.
When managers cannot check in on global resources and analyze their performance, it may lead to over/underutilization. As a result, failure to monitor resource usage can result in stress, burnout, and disengagement, which can affect the project’s quality. In addition, if a firm cannot meet its client’s expectations, it may suffer revenue loss, reducing profitability and denting its brand reputation.
2.4 Mismatched skillset as per global project requirements
Global projects often need employees with specialized skill sets to meet their high-standard deliverable quality. However, sometimes even if organizations allocate employees from a low-cost region, they may not be compatible with the project. This can be due to language barriers, inability to cope in cross-functional teams, obstinateness, etc.
Thus, firms will have no choice but to resort to last-minute replacement of the existing resources, leading to costly recruitments and schedule & budget overruns. As a result, the global project’s progress may be adversely affected, resulting in substandard deliverables.
2.5 Compliance and country-specific workforce issues
Global managers must follow local labor laws and regulations of respective countries. Failure to do so can result in legal issues and lawsuits against the organization. However, as the company expands operations into multiple countries, keeping track of and adhering to local labor and consumer rules becomes increasingly difficult.
For example, OECD (Organization for Economic Cooperation and Development) members such as Denmark, Norway, and Germany have shorter workweeks compared to other nations. So, companies must comply with local regulations to schedule resources from these regions. Otherwise, they risk lawsuits by the employees. Thus, firms should do research and keep proper records on all the country-specific labor laws to prevent workforce-related issues.
Now that we know about the different challenges let’s understand how ERM software can help.
3. How can resource management solutions ensure successful global project delivery?
Resource management software offers advanced features and functionalities that help mitigate workforce challenges in global project delivery.
- It provides 360-degree visibility into all the resources and their attributes like- skills, competencies, bookings, schedules, cost rate, etc.
- It also offers advanced filtering and sorting options, which makes it easy for global project managers to choose the best-fit resources from multiple locations.
- In addition, the multidimensional scheduler enables you to sort the resources by multiple dimensions like locations, teams, etc., and book appropriate employees for each global project.
- Further, it provides clear visibility into the time zones of various global employees, which aids managers in proper resource scheduling without causing burnout and stress.
- Additionally, managers can configure the maximum capacity of a resource and public holidays in accordance with their country’s labor laws while booking to avoid legal penalties.
- Also, the tool offers real-time utilization reports that help managers track the utilization levels of global resources and take necessary actions to prevent situations of over/underutilization.
Hence, modern ERM software assists in reducing various resource-centric challenges. Thus, it helps ensure successful project execution and increase the firm’s reputation globally.
The Bottom Line
Global projects are bound to face resource-related challenges, which, if not managed effectively, can impede the project’s progress. Therefore, global project managers must act proactively and implement robust ERM software that will help them overcome the above-mentioned challenges. This will ensure successful global project delivery, increasing the profitability of the firm. So, are you ready to take the necessary actions and increase the bottom line of your firm?
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.