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Outsourcing Manager: Job Description & Salary

Outsourcing management may be a good career choice for those interested in assisting organizations manage outside contracts or projects. Read on to review highlights, including the educational requirements and job outlook, for outsourcing managers.

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Career Definition of an Outsourcing Manager

An outsourcing manager specializes in overseeing subcontracted projects for an organization, which involves everything from proposal review to creating budgets. Outsourcing managers can work for a variety of industries, including healthcare organizations and financial services agencies. Most in the field work full-time in an office environment.

Outsourcing managers' job duties will vary depending on the industry. General job responsibilities may include collaborating with multiple teams to determine requirements for proposals, ensuring projects stay within budget and allotted timeframe, and negotiating suggested alterations to vendor contracts, either during the bidding process or after selection. Outsourcing managers can perform accounting duties, such as audit preparation or general ledger reconciliations. They may ensure internal departments are aligned with an organization's goals for its outsourcing program. Outsourcing managers may also interact with key stakeholders to apprise them of project status, including what to expect from the contract selection process. They should strive to promote an organization's overall strategic development, which includes following internal procedures for ethical business practices.

Educational Requirements Bachelor's degree
Job Skills Excellent analytical abilities, strong project management, and strong interpersonal skills
Median Salary (2017)* $108,233
Job Outlook (2014-2024)** 7% (for all general & operations managers)

Sources: *PayScale, **U.S. Bureau of Labor Statistics

Required Education

Individuals will need a bachelor's degree to work as an outsourcing manager, with some employers preferring a graduate degree. Relevant management work experience will be beneficial. Interested individuals can pursue membership in a professional organization like the International Association of Outsourcing Professionals. The organization seeks to unite providers, customers, and advisors by encouraging collaboration, streamlining services, and offering training.

Required Skills

Excellent analytical abilities are one of the most essential skills for an outsourcing manager, as they are responsible for evaluating outside proposals, reviewing organizations' qualifications, and determining the best fit for a project. Outsourcing managers will need a strong understanding of their organization's needs in order to effectively select subcontracted vendors. They should have strong project management skills to successfully oversee personnel and multiple projects. Outsourcing managers should also have strong interpersonal skills in order to effectively collaborate with colleagues and interact with organizational stakeholders and subcontracted personnel.

Career Outlook and Salary

The U.S. Bureau of Labor Statistics (BLS) does not collect statistics on outsourcing managers; however, they reported a 7% growth for the category of general and operations managers during 2014-2024, which is as fast as the average for all occupations. In October 2017, PayScale reported a median annual salary of $108,233 for outsourcing managers.

Related Careers

Individuals considering a career as an outsourcing manager might also be interested in one of the related careers profiled below. They offer candidates the opportunity to utilize their proposal or contract experience in other management positions.

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