• Can Delays in IT Project Execution Effect Business?

    The information technology (IT) industry has grown to become one of the most pivotal economic engines of our global society. However, its size and influence does not mean it is not susceptible to internal or external influences and pressures. The information technology industry must stay vigilant of many related business aspects, and learn to recognize how these affect their overall enterprises. One such obstacle that can impede the information technology industry lies in delays in project execution. Whether the result of internal or external factors, delays in project execution can result in severe financial implications, increased uncertainty throughout an organization and can also impede in achieving business goals.

    In the realm of business, money always plays a critical role. The more money spent on projects typically result in decreased profit margins. This can hinder an organization in countless ways. Leadership may elect to cut staff and projects, to make up the difference in loss profits. It is always in every party’s best interests to minimize costs where possible, and to streamline spending.

    This cannot easily be accomplished when project delays arise. When project delays occur, project overheads increased significantly. This is particularly true in technology-driven projects. When project delays occur, costs must be directly towards remedying any hiccups that have caused the delay in the first place. In the information technology industry, this regularly occurs due to design errors and project scope change.

    Further cost increases occur due to overhead spending extensions. Projects have administrators, office staff, and supervisors. Other overheads include insurance and equipment rentals. These keep accumulating as long as the project has not reached completion. When there is a delay, the total overhead costs rise.

    In a worst case scenario, entire projects can be scrapped by the failure to keep pace with project expectations. This occurred in September 2011, when a multibillion pound program to create a computerized patient record system across the entire NHS was terminated after years of delays, technical complications, disputes, and exorbitant costs. Companies can lose face publicly and even go under from the effects of large-scale project delays.

    When managers discover that a project faces a substantial delay in the completion date, they can attempt to reduce overhead by cutting staff and eliminating outlays caused by elements that won’t be essential. However, even this tactic can have negative consequences, as this could create friction between management and labors with the removal of people and comforts held in high esteem. Further organizational discord could result from removing project components individuals have become accustomed to.

    Lawsuits and litigation can also arise from the failure to maintain project deadlines. Information technology projects frequently coincide with broader business initiatives that include outside parties such as governments and other corporate entities. Improper documentation of a clear scope of work will hinder projects.  Contractual disputes can result if one party feels slighted by the failure of the other to fulfill their responsibilities.

    The list of potential consequences caused by project delays to be considered by the information technology industry are vast and unenviable. It is essential for information technology specialists to recognize the perils that they can encounter in the pursuit of projects. By knowing what can affect them, these specialists can more fully develop and implement more comprehensive and advantageous policies and procedures to safeguard project goals. Preventive measures can ensure that delays are less likely to occur and that long term success is guaranteed.

     

    Categories: Information Technology, technology

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    One thought on “Can Delays in IT Project Execution Effect Business?

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