Business as usual for underperforming IT projects

Boards continue to provide backing for low performing IT projects

Senior management of many companies worldwide treat underperfoming IT projects as a fact of life, according to new research.

Some 43 per cent of managers treat such problems as the norm, despite one in three projects failing to meet expectations, said the survey by Tata Consultancy Services (TCS).

This attitude is more common in Europe, where 44 per cent of middle and senior IT managers interviewed held such a view, along with 48 per cent of Asian management.

Common problems cited as reasons for lack of perfomance included overrun on time (62 per cent); budget (49 per cent); and higher than expected maintenance costs (47 per cent). One in four companies said they find business users are reluctant to adopt new systems.

But the majority of respondents (59 per cent) said that financial support for IT projects is not an issue.

Companies should re-think their IT services and outsourcing strategies and work with suppliers to demonstrate a clear ability to execute on time, on budget and to plan, said the report.

“Businesses should look at how their partners operate before signing on the dotted line,” said N. Chandrasekaran, chief operating officer and executive director at TCS.

“They should consider longevity of partnerships, repeat business, and organic growth of relationships. Financial credibility and global reach are also important in today’s world economy – ultimately what businesses should look for is the ability to provide the right services at the right cost in the right timeframe.”

The research taklked to 800 middle and senior IT managers worldwide.