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Methods of optimizing the project portfolio of the outsourcing it company

Author

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  • Serhii Cheverda

    (Zaporizhzhia National University)

Abstract

Effective formation and management of a project portfolio is the key to the successful functioning of modern outsourcing companies. At the same time, this process has certain features in the outsourcing business compared to companies that implement their own products and services. Therefore, the task arises of adapting classical models and developing new models for building an optimal project portfolio specifically for outsourcing companies. The article provides a comprehensive analysis of existing theoretical approaches and practical models for project portfolio optimization from the perspective of their applicability in the outsourcing business. The classical portfolio analysis models are considered, including the Markowitz model, the Boston Consulting Group matrix, the GE/McKinsey model, the Arthur D. Little model, and others. Modern flexible and adaptive approaches to project portfolio management are also analyzed. Particular attention is paid to artificial intelligence methods capable of taking into account the multifactor nature of the portfolio optimzation problem. The necessity of adapting these models and developing new approaches taking into account the specifics of the outsourcing business is substantiated. In particular, such key aspects are identified as the limited choice of projects, focus on long-term relationships with customers, higher uncertainty and risk of projects, limitation of key resources of the outsourcer. The main directions for improving the processes of forming and managing a project portfolio in outsourcing companies are proposed based on the research results. The obtained results make it possible to expand the theoretical principles and develop practical recommendations for constructing effective models of an optimal project portfolio specifically for the outsourcing business. This will contribute to making informed management decisions and maximizing the value of an outsourcing company's project portfolio.

Suggested Citation

  • Serhii Cheverda, 2023. "Methods of optimizing the project portfolio of the outsourcing it company," Economic Synergy, Higher Educational Institution Academician Yuriy Bugay International Scientific & Technical University, issue 4, pages 187-206.
  • Handle: RePEc:bja:isteus:y:2023:i:4:p:187-206
    DOI: 10.53920/ES-2023-4-13
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    File URL: https://es.istu.edu.ua/EconomicSynergy/article/view/140/122
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    More about this item

    Keywords

    outsourcing; project portfolio; portfolio optimization; optimization models; markowitz model; bcg matrix; mckinsey model; artificial intelligence methods; fuzzy logic; neural networks;
    All these keywords.

    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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