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Companies waste £35bn on ill-conceived IT projects

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CIOL Bureau
Updated On
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Sandhya S M

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BANGALORE: A Gartner study reports that companies waste nearly £35 billion

each year on ill conceived IT projects. Revealing this information, Bill Rann,

head-Global Governance Practice & member-Business Continuity and Security,

BT, said, “Outsourcers should have focused growth strategies before embarking

on new projects by way of building strong competence and domain expertise. Firms

need to build relationships on strong service level agreements (SLA) and robust

delivery models.”

Addressing a session on “BPO

Best Practices: Quality, Security compliances and technology innovation,” at

the ninth Nasscom India ITES-BPO strategy summit, he spoke on some of the key

outcomes of ill-conceived projects. Quoting a s404 auditing report which

addresses the financial risks, he said that globally companies have orphaned

nearly 2 million user access Ids and there are 150,000 spread sheets floating

across the network, which amounts colossal waste of resources.

“Companies need to understand that IT audit and control assessments could

avert such networked IT disasters. Optimizing end-end processes ensures

operational and control excellence,” he revealed.

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Firms can increase shareholder value only if they have developed and

implemented effective strategies and efficient capital structures. Focusing on

core competency ensures reliability of business operations resulting exceptional

returns. Exposure to regulatory and stakeholder values mitigates risk management

ensuring success path and driving business growth, he said.

Speaking at the same session on “Emerging network architecture for BPO

industry” Sukhbir Singh Sethi, Principal Consultant — IT Services, Cisco

Systems, India & SAARC, said, “Some of the key challenges that bog BPOs

are on demand provisioning and database resource optimization and

virtualizations. The challenges are compounded by M&As with diversities of

problems such as security isolation, business firewalling and others”.

However, network virtualization helps to mitigate these issues by way

building closed user groups, which ensures private, secure and independent

processes. Consolidation policies and services enable simplified deployments and

sharing of network intelligent services and desktops lowers operating costs, he

said.

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