Role of Outsourcing in the project

Outsourcing always seeks provision of sources and services from those experts, specialists, or companies with reputable names, brands and services in order to facilitate continuation and survival of the businesses. According to Fair and Shaw (1997) abstract, outsourcing can be defined as the process of acquiring an item that the company cannot produce internally
As choices and decisions are evaluated from different components of operations in outsourcing, advantages of outsourcing are to considered. When done for the right reasons, outsourcing will actually help to grow and save money. There are other advantages of outsourcing that go beyond money.

Advantages of outsourcing:
1. Focus On Core Activities: In rapid growth periods, the operations of a project will
expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made the project successful. Outsourcing those activities will allow refocusing on those project activities that are important without sacrificing quality of work. Example: A company lands a large contract that will significantly increase the volume of purchasing in a very short period of time; Outsource purchasing.

2. Cost And Efficiency Savings: Project functions that are complicated in nature, but the size of
your project is preventing from performing it at a consistent and reasonable cost, is another advantage of outsourcing.

3. Reduced Overhead: Overhead costs of performing a particular function is extremely high.

Consider outsourcing those functions which can be moved easily. Example: Project has resulted in an increased need for space. The current location is very expensive and there is no room to expand. Outsource some simple operations in order to reduce the need for space.

4. Operational Control: Operations whose costs are running out of control must be considered for
outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, outsourcing mangers can bring better management skills to the project than what would otherwise be available. Example: An technology department that has too many projects, not enough people and a budget that far exceeds their contribution to the organization. A contracted outsourcing agreement will force management to prioritize their requests and bring control back to that area.

5. Staffing Flexibility: Outsourcing will allow operations that have seasonal or cyclical demands to
bring in additional resources when you need them and release them when you're done.

6. Continuity & Risk Management: Periods of high employee turnover will add uncertainty and
inconsistency to the operations. Outsourcing will provided a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the project. Example: The human resource manager is on an extended medical leave and the two administrative assistants leave for new jobs in a very short period of time. Outsourcing the human resource function would reduce the risk and allow the company to keep operating.

7. Develop Internal : A large project needs to be undertaken that requires skills that your staff does
not possess. On-site outsourcing will bring people with the skills you need into your project. Your people can work alongside of them to acquire the new skill set.

Roles of Outsourcing in Palm Jumeirah The Palm Jumeirah is in the shape of a palm tree. It consists of a trunk, a crown with 16 fronds, and a surrounding crescent island that forms an 11 kilometers (6.8 mi) long breakwater. Land work was outsourced to Van Oord a Dutch contracting company that specializes in dredging and land reclamation. Total cost reached US$12.3 billion and maintaining the island is a costly expenditure. Workers from South Asia were involved in the construction. As many as 40,000 involved in the construction of the island. Hill International was the first outside consultant to be approached on the basis of its experience with 'mega' projects of a similar scale. They consulted on the overall concept design was US architectural firm Helman Hurley Charvat Peacock (HHCP), famous for its work with Sea World, Disney and Universal Studios. The transport network was designed following three in-depth surveys by leading traffic consultant MVA. The Palm Monorail, created by Hitachi Ltd, offers a greener option, running from one end of the development to the other a journey of about ten minutes.

Progress and Performance Measurement and Evaluation

Progress While construction of these massive artificial islands has been an enormous task, they are moving ahead at great speed, according to Manal Shaheen, Director of Sales, Marketing & Customer Service for Nakheel, the projects' developer. Following is an overview of the progress that has been made on each of the island developments. The Palm Jumeirah is now the largest man-made island in the world and can be viewed from outer space. The first phase of the Palm Jumeirah residences is already at an advanced stage, with 75 per cent of the 4,000 properties ready for handover. This includes all 20 Shoreline Apartment buildings on the trunk, which house more than 2,600 units. In late 2006, people began moving in, and Nakheel says some 500 families now live on the island. A number of hotels are also being built on the island, including Atlantis, The Palm - a 1,500

room resort hotel and water theme park - which is expected to open by November 2008. In addition, 28 beachfront hotels, located on the crescent section of the Palm, will be open by the end of 2009, with most of the worlds top brands represented including Hilton, Radisson, and Movenpick. Another key feature of the development, the 5.4km-long Palm Monorail, the first of its kind in the Middle East, is due to open at the end of 2008. Performance Widely recognized, Palm Jumeirah is largest artificial island. The Island was started building in June 2001. At property launch in May 2002, all villas were sold out in 72 hours. Original prices (OP) in May 2002 were (all figures AED) 4.65m for Signature Villas, 2.8m for Garden Homes, 2.0m for Town Homes, 1.1m for 1Bedroom Shoreline Apartments. Owners selling in 2005 realized gains of between 50% and 150% on the OP. Work force were applied with full intensity to complete work on time with no compromise to quality of work. The main motive was to finish the whole Island as soon as possible which indeed was quite efficiently achieved by the engineers involved. By 2006, with 75% completion of residential area, where about 500 families already living. Many 5 Star multi storied Hotels were started on time with no delay to work and resulting in full satisfaction to the tourist and visitors providing full comforts and work class luxury. For more sophisticated travelling, monorail is working in the middle-east which is a great way to travel and time saving. In June 2007, the QEII (a large boat from the UK) was purchased and will be moored as a floating hotel somewhere off the Jumeirah Palm in 2008.