IT projects not focused on delivering business value

CA research reveals a third of projects over-spend up to 20 percent of original budget

Half of companies measure the success of IT projects based on whether they deliver to budget, rather than the business value achieved by projects, new CA research has revealed.

The survey, which was based on a survey of 100 IT directors, found that a third of IT projects over-spend by between 10 and 20 percent of the original budget costing large UK and Irish businesses £256m per year. As a result, the pressure on IT chiefs to ensure a project remains within budget is so great that this measurement becomes the key project focus, explained David Groves, head of the Clarity division at CA.

However, Groves argued that IT directors instead need to concentrate on how projects can deliver measurable value and be mapped on key business goals.

Groves added that the use of spreadsheets by IT chiefs to plan a project gives them a lack of visibility and control, and makes it difficult to link aspects of the work. Instead they should adopt project portfolio management tools to get a strong view across all projects and how they align to business needs, Groves advised.

Large companies focus on an average of 29 projects at any one time, and this further obstructs project visibility, the research showed. Groves said only running necessary projects and investing in project management training will help businesses stay within budget.