Project Management office is the workhorse that many IT firms are focusing on to cut costs, boost IT efficiency and ensure that projects are delivered on time and within a set budget. PMO trend has instilled a sense of discipline in the workings of the IT department.

PMO provides the necessary structure to standardize project management policies and aid IT project management by determining work plans for processes that are repeated. Project expense has become an important deciding factor after the Sarbanes-Oxley Act which requires companies to make public the investments made in large projects that may affect the operating performance of a company. PMO drives on time project completion without exhausting finances.

PMO operations are in two basic models: the first which takes on the role in a consulting capacity by providing project managers to business units and undertaking training, best practices and guidance. The second model is the amalgamation of project managers and staff loaned to business units to work on a set project to conform to a centralized design

The structure and organization of a PMO is dictated by individual organizational factors encircling targeted goals, cultural dictums and strength. When disposed with synchronicity to an organization’s culture, PMOs deliver IT projects that satisfy both parties: the CFO and internal customers.

The CIO’s should allow a three year time window to reap benefits, PMO saves the organization money by assisting with better project planning, reducing project failures and supporting high paying projects.

Raynor, the managing director at Data Analysis and Results says, “By having oversight to all projects and personnel, a PMO can assign the best people to priority projects and keep their attention focused on that project.” Employee productivity is also improved by efficient resource allocation by eliminating multiple assignments that requires an employee to keep jumping from one half- finished project to another by prioritizing assignments with higher lucrative returns.

Returns are incurred in three to six months by proving a clear picture that enables canceling, postponement or scaling back unnecessary projects. At Schlumberger, a diversified technology services company, PMO has saved them more than $3 million by reducing small projects from 233 to 13.


In conclusion, the advantages of PMO are improved efficiency in project handling and workforce, better strategic planning of projects to reduce workload, increased customer satisfaction by delivering projects on time and lastly a steep profit rise.