Project work is the practice of outsourcing certain business functions to IT consulting companies that have expertise in that particular line of work. Project work can consist of a short-term solution to a particular situation, such as the need to develop a new customer database program that will provide increased flexibility in the use of such data. Some kinds of project work are of the long-term variety and consist of an enterprise recognizing that outsourcing certain aspects of the business makes good economical sense.
Regardless of whether project work is long-term or short-term, it offers businesses several benefits. One of its primary advantages is the fact that adopting a project work strategy allows the core staff of a company to remain focused on the activities that have historically made an enterprise successful. By not diverting the attention of permanent, in-house staff to other functions, an enterprise is more likely to remain profitable.
Project work also allows companies to take advantage of economies of scale. By outsourcing project work to a firm that specializes in certain functions and has the capacity to take on more work of a similar nature, the company will save considerable amounts of money. It is more efficient, for example, for a small doctor's office to outsource medical billing than it would be to hire their own medical billing expert.
A third advantage to project work is that is reduces overhead for the company that uses it. There is no need to acquire extra office space or incur the cost of providing benefits for more personnel if instead, some company operations can be reorganized as project work performed by an outside firm.