Project Office
‘Project office’ means a place of business established by a foreign company in India provided it has secured from an Indian company, a contract to execute a project in India but excludes.
a. Liaison Office, and the project is funded directly by inward remittance from abroad; or
b. the project is funded by a World Bank or
c. the International Monetary Fund or similar other body; or
d. the project has been cleared by an appropriate authority; or a company or entity in India awarding the contract has been granted term loan by a Public Financial Institution or a bank in India for the Project. ‘Any other place of business’ includes Site office and branch office.
Project offices make possible complex portfolio planning and execution, risk evaluation at the strategic level, alignment of benefit and cost, and opportunity for employee and manager development. Organizational maturity in conflict management and resource allocation is promoted.
Advantages of opening project office:
- Standardization
- Consistent, accurate results
- Reduce cost
- Facilitating project completion
- Alignment with organizational goals
- Quality Assurance
- Better decision making
Disadvantage of opening project office :
- Enhance financial cost
- Require considerable time and energy
- Need extra layer of scrutiny and control creates a time overhead and puts additional work on your project managers,
- Project Management Offices are a lack of clarity as to their roles and responsibilities. When establishing a new management structure, ambiguity and confusion are usually fatal.
