NEXT-GEN APPROACH TO IT PROJECT SERVICES PART I: WHY NEARLY 70% OF IT PROJECTS FAIL
IT projects represent a sizeable (typically between 30-50%) portion of total IT-related spending for most companies, however only about a third of IT projects are delivered on time and on budget, and even then only about half of these deliver the anticipated functional outcomes.
In our mini-series on A Next-Gen Approach to IT Resourcing, Bio introduces some innovations in resourcing that can make a real difference to the capability and capacity challenges that can undermine IT project success. However, next-gen resourcing alone is only part of the answer to the IT project challenge, something more is needed.
The reasons for IT project failure are many, with the most common being poor definition in scope and estimation, lack of engagement in senior sponsorship and the inability to identify and manage project risk.
At the heart of this is the critical role of Project Management, an enigma to itself because of its evolution when contrasted with the pivotal role it now plays. Unlike other IT roles, for example software development or technical support, the path to a Project Management career tends to be less defined - in most cases it is a step from one of these foundations rather than a direct career in itself. This relative immaturity of the Project Management discipline becomes an issue for organisations, particularly when applied to managing the complexities involved in ensuring IT project success.
The IT Project Management challenge is exacerbated when you consider the pace of evolution in technology, compliance and business strategy, each of which tend to be changing on ever-decreasing cycles. The Project Manager often needs to become an “instant-expert” to navigate the raft of views and inputs impacting their projects. And as IT continues to play catch-up from the recession, the demand placed on IT to deliver whilst still being constrained by fixed budgets, inflexible resourcing processes and outdated systems or processes, is a major constraining factor to project delivery.
So IT teams need a new way of reconciling these challenges, as they search for cost-effective and flexible alternatives that improve project delivery performance. Based on the feedback we have from our clients, we pose that it’s time for our proven next-gen approach to IT Project Services.
This is the first part in our Next-Gen IT Project Services mini-series, so please look out for Part II next week where we discuss how to get your failing IT projects back on track!