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Lack of management control affects business |
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Friday, 26 October 2007 01:00 |
New research from CA, conducted by independent research company Loudhouse, of 100 CIOs and IT Directors, reveals that poor visibility of IT project status and a lack of management control over them is costing UK and Irish enterprises over a quarter of a billion pounds per year.
A third of all projects implemented each year end up over budget with the typical over-spend between 10% and 20% of the original budget. In addition, a quarter of all IT projects were shown to end up more than 50% over budget. The research also highlighted the increased complexity of IT projects with a typical large company running 29 projects at any one time and an average IT budget of between £1m and £5m
The primary reasons for the budget over-spend are as a result of poor forecasting (50%), project scope increasing during implementation (39%) and issues of interdependencies and conflicts between multiple projects (36%). This isn’t helped by the lack of visibility and control that CIOs have over their project portfolios - 39% of IT directors don’t have complete visibility over the initiatives they are running, so cannot see when projects are threatening to run over budget.
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