And what we can do to make IT Project Management Better
The IT industry was projected to spend $5.3 trillion in 2022, and with that budget came an increased demand for qualified IT project managers. Collaboration and agile methodologies are in high demand, and companies are investing in project management tools to improve their success rates. However, there are some challenges in the industry that IT project managers don’t want you to know about.
The average IT project runs over budget by 27%, and one in six projects turns into a “black swan,” running 200% over budget and 70% over schedule. These “black swan” projects can even lead to bankruptcy. Only 2.5% of companies complete 100% of their projects successfully, and only 40% of IBM’s projects meet their criteria on schedule, budget, and quality. In fact, 17% of IT projects can be so problematic that they threaten the very existence of the company.
Big data and ERP projects have particularly high failure rates, with 85% and 50% respectively. Additionally, only 58% of companies value IT project management, and IT projects cost the United States $50-$150B in lost revenue and productivity.
While there are challenges in the IT project management industry, there are also potential solutions that can improve success rates. Improved training and a shift in mindset can help overcome some of the issues that plague the industry. By addressing the underlying cultural problems and embracing collaboration and agile methodologies, companies can improve their project management processes.
If you’re struggling with your company’s project management, don’t hesitate to reach out for help. Comment on this article or contact me directly to discuss ways to improve your success rates and ensure the success of your projects. Together, we can tackle the challenges and find solutions to improve the IT project management industry.