Feeds

IT overruns costing business €375m a year

A quarter run 50% over budget

Intelligent flash storage arrays

Budget overruns on IT projects are costing Irish and UK businesses more than €375m(£256m) a year, new research has revealed.

The study, conducted by research firm Loudhouse on behalf of software company CA, found that one-third of IT projects end up over budget each year, due to poor forecasting, project scope creep and a lack of management control over projects.

Almost a quarter of the projects end up more than 50 per cent over budget, with the typical overspend running between 10 per cent and 20 per cent of the original budget.

The CA study found that half of companies surveyed are using spreadsheets to manage IT initiatives, despite having an average of 29 IT projects running simultaneously, contributing to the difficulty in retaining control over them.

The statistics are even more startling given that half of all companies use 'delivery on budget' as a key measure when evaluating project success. The survey found that only a third measured success by how the projects aligned with business objectives, while only a quarter carry out an ROI (return on investment) calculation based on business value delivered.

"The survey reveals that CIOs are still principally being judged on whether they deliver within budget rather than delivering strategic value to the business," said Frank Kennedy, CA's country manager in Ireland.

"To ensure CIOs can focus their attention on the most important projects and the ones that add most value to the business, it's essential that they are presented with a clear and holistic view of their organisation," he continued. "This means that organisations need to take not just a project-by-project view but also a portfolio view of all IT investments."

The survey was conducted among 100 CIOs and IT directors from companies with more than 500 employees and a typical IT budget of between €1.5m(£1m) and €7.5m(£5m) from large firms in the UK and Ireland.

© 2007 ENN

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.