Six common reasons why IT projects fail

BANGALORE, INDIA: A project can fail for a combination of reasons. By understanding why projects fail, outsourcers can plan ahead to avoid potential problems.

Many outsourcing companies have created beneficial outsourcing relationships with vendors. Unfortunately, there are the occasional projects that fail to meet deadlines or criteria set forth by the outsourcers. When a project does fail, there are usually numerous reasons and not just one underlying cause.

Lack of outsourcing strategy
The outsourcing company must take the time to formulate a strategy for handling outsourced projects. Working with vendors in other countries can create even more complications, which just shows the importance of having a plan. Managers must consider how the process will be managed and must set expectations for the projects. Sometimes outsourcing companies do not adequately prepare for the administration of projects. Management should clarify how global sourcing will be implemented and effectively communicate the strategy to the internal IT department and the vendor.

Miscalculated time involved
Outsourcing companies often do not realize the amount of time it will take to get a project in operation with a vendor. Some outsourcers take a "hands off" approach, meaning they do not feel that they have to be involved once the project is sent to the vendor. That thought process can be damaging to the project. It takes time and effort to transfer technical and business knowledge to the vendor. Once the transfer is made, hours will be spent maintaining the business relationship. The outsourcing company and the vendor will also have to coordinate between the team members to ensure that everyone understands project specifications and deadlines.

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