PracticeConsultingCompanies pay dearly for failed IT projects

Companies pay dearly for failed IT projects

More than half of large companies admit that failed IT projects have cost them £8m each in the last year, according to research conducted by KPMG

Link: IT departments a drain on UK businesses

One hundred and thirty-four listed companies in the UK, USA, Africa, Australia and Europe, said poor project management was largely to blame.

Respondents cited inadequate planning, poor scope management and poor communication between IT and business as the most common reasons for failure.

In contrast 98% of organisations with strong and mature programme management functions reported an unblemished record of successful projects.

Bryan Cruickshank, UK head of information risk management at KPMG, criticised companies for failing to recognise the importance of strong project management as a key factor to IT success.

‘It’s a pretty concerning picture. Not enough attention is given to what project management means. Training can lack a lot of practical insight. The skill of project management is knowing when and where to apply the techniques.

‘Blind application of methodologies doesn’t tend to work very well and it’s certainly not something you can do straight out of university,’ Cruickshank said.

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