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One in three IT projects fail to deliver on promise
By siliconindia
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Wednesday, 19 December 2007, 17:21 IST
Mumbai: The failure of IT projects does not disturb companies, as companies consider it a norm with one in three companies' IT projects failing to perform up to expectations. According to a survey by TCS, 43 percent of the organizations said their business managers and boards accept the problems as the norm, 69 percent of the respondents said their managers and boards continued to provide the necessary financial support for these projects.
Some common problems cited in the survey include time overrun (62 per cent), budget (49 per cent) and higher than expected maintenance costs (47 per cent). Moreover, one in four companies said they find business users reluctant to adopt new systems.
Following the research findings, TCS is urging businesses to re-think their IT services and outsourcing strategies. Organizations need to work with partners that can explain the value of their work at a board level and provide key performance indicators (KPIs) to show the benefit of the investments made.
"Studies of the subject have shown great variance of results, no clear measurement methodologies, and a lack of process. As a result, customers have built up expectations and a history of negative perception regarding the level of IT failure. In contrast, TCS has been measuring the performance on IT projects, for more than 12 years. Over the period, we have built tools and a fantastic set of metrics that establish clear expectation for project success," said N Chandrasekaran, Executive Director and COO, TCS.