Feeds

UK IT departments waste £165m a year

Back to basics, and back to India...

  • alert
  • submit to reddit

Business security measures using SSL

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

New hybrid storage solutions

More from The Register

next story
'Windows 9' LEAK: Microsoft's playing catchup with Linux
Multiple desktops and live tiles in restored Start button star in new vids
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
iOS 8 release: WebGL now runs everywhere. Hurrah for 3D graphics!
HTML 5's pretty neat ... when your browser supports it
Mathematica hits the Web
Wolfram embraces the cloud, promies private cloud cut of its number-cruncher
NHS grows a NoSQL backbone and rips out its Oracle Spine
Open source? In the government? Ha ha! What, wait ...?
Google extends app refund window to two hours
You now have 120 minutes to finish that game instead of 15
Intel: Hey, enterprises, drop everything and DO HADOOP
Big Data analytics projected to run on more servers than any other app
SUSE Linux owner Attachmate gobbled by Micro Focus for $2.3bn
Merger will lead to mainframe and COBOL powerhouse
iOS 8 Healthkit gets a bug SO Apple KILLS it. That's real healthcare!
Not fit for purpose on day of launch, says Cupertino
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.