What Is Project Management Situation For External And Internal Projects?


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David Gill Profile
David Gill answered
The project management situation for external and internal projects is pretty much the same for both.
An internal project is carried in order to improve a company or organisation and may focus on any such department in need of improvement or updating. This could take the form of restructuring but effectively the "internal customer” is the head of the area that needs the project seeing through to the end successfully to the benefit of the whole.
Conversely, an external project is taken on for customers remote from the main company undertaking the project and located outside the enterprise carrying out the project.
Projects large or small, which reorganise, restructure, or even downsize, needs to have established aims and objectives which need to be planned, and implemented by a project manager who will determine the size of the team and how to achieve the target.
Anonymous Profile
Anonymous answered
I have extensive experience in IT project manager both as an internal resource & external provider.  The difference is huge!  As an internal PM although you will probably have constraints (resources & time) you can generally focus on providing maximum value to your customer.  You may also have the option of adopting an agile approach.  As an external provider (usually fixed price contract) you will face the pressure from your organization to reduce costs (resources and time) and pressure from the customer get as much as they can (scope).  The scope & contract are never completely clear and your main focus is fighting contractual disputes.  Your job as an internal PM can be very rewarding, but as an external PM survival is your ultimate goal
Nouman Umar Profile
Nouman Umar answered
Projects as building blocks in the design and execution of enterprise strategies can be with either external or internal in nature. An external project is one undertaken for or on behalf of stakeholders who are not part of the enterprise structure such as design and construction of the bridge, highway or new product design. In an external project the customer is located outside the enterprise such as another company, government or military organization.

An internal project is one to be carried out primarily for the improvement of organization process such as productivity improvement, training initiatives, organizational restructuring or reengineering. Internal projects usually have an internal customer such as a manufacturing manager who wishes to update the company's manufacturing equipment build new plant or develop enhanced information system capability.

Companies that are in economic difficulties often undergo downsizing or restructuring. Improvements in organizational process can be gained from reengineering projects. The development of new award system flexible work practices improvement in quality or the flow of work on the production line can be accomplished by using project teams. Although many of these projects are modest compared to large projects that are being developed for an outside customer, for the member of the enterprise the internal projects usually indicate that a change in the operating policies is forthcoming.

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