Feeds

IT project failure is rampant – KPMG

When will we ever learn

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Most public firms have written off failed IT projects in the past year, typically due to poor project management, according to a new report from KPMG.

The KMPG study, which covers 134 listed companies in the UK, US, Africa, Australia and Europe, reports that 56 per cent of firms have had to write off at least one IT project in the last year as a failure. The average loss incurred as a result of these failures was about €12.5m, with single biggest write-off costing almost €210m.

The KPMG survey also said that only nine per cent of organisations feel that delivering projects within budget is their most important measurement for success. Twenty-one per cent said that being on time was their prime driver.

Among the reasons cited for failure were inadequate planning, poor scope management and poor communication between the IT function and the business, KPMG said, with 67 per cent of the companies who participated in the survey claiming that their programme management function was in need of improvement.

Indeed, the survey carried many more statistics which suggested that the reason many such projects fail is poor communication between company managers and those who build and manage new IT infrastructure. For example, the Project Management Institute certified only 23 per cent of organisations' relevant employees. Additionally, while 4 per cent of personnel had between 5 and 10 years' experience, only 20 percent have 10 years' experience or more. Eighty-one per cent used what KPMG deemed "a home grown methodology" to manage their projects.

"Large organisations often run multiple business transformation and IT projects at any one time, where a central programme management office is pivotal to ensuring the effective co-ordination, quality assurance, risk management and reporting of all the programmes underway," explained Bryan Cruickshank, UK Head of Information Risk Management at KPMG. "The risk is that without a sound programme management function, project costs overrun, timescales slip and the planned benefits lose their focus and are not realised."

Additional figures from the KPMG study showed that, on average, each programme management office oversaw 83 projects valued at a total of €105m.

© ENN

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.