Feeds

UK IT departments waste £165m a year

Back to basics, and back to India...

  • alert
  • submit to reddit

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

IT departments are wasting £165m a year by failing to keep control of IT projects, under-using existing offshore resources and not keeping strategy in line with overall business strategy.

So says Business Engine, a supplier of IT project portfolio management software. It commissioned researchers to investigate return on investment at 30 blue chip healthcare, retail and telecoms companies over three years. It looked for areas within businesses that created the best return on investment.

The three main failings were: not taking full advantage of existing offshore resources, poor visibility and control of projects and a failure to properly align IT with business strategy.

Doug Dickey, CEO of Business Engine, said: "I've been doing this for 30 years and I've seen IT departments change - they used to be project-based, running sequential projects, now large companies have dozens of projects running at once and it's really hard for one person to keep track and remember why you're doing it. The complexity and volume of projects creates an atmosphere where you lose alignment with the business.You have to understand what the business needs, then provide it efficently."

He said many IT departments had processes in place for dealing with two projects - but are now trying to manage hundreds.

Intellectual capital costs consume nearly half the IT budget which is why properly-run offshore projects can create large savings. But such projects still need proper management to set specifications and processes and to keep them in line with overall business strategy, according to Dickey.

More details of the survey are here. ®

Related stories

IT outsourcing goes east
Offshoring a growing option
Norwich Union axes 950 IT jobs
PCG slams Abbey's India jobs move

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Captain Kirk sets phaser to SLAUGHTER after trying new Facebook app
William Shatner less-than-impressed by Zuck's celebrity-only app
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
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.