€Plan, manage and lead.€
In its simplest form, that's what project management is.
What managers deliver is nothing but profit, ROI, quality. The best ideas are always on paper, to execute them, with profits and in time, with quality through effective project management is the challenge that organizations face. Thus, project management has quickly made up its way to the radar screens of senior executives.
Most of the Indian IT Outsourcing companies today have a new or renewed interest in project management. The total global projections for spending on technology goods, services and staff reached $6-8 trillion from $2.4 trillion (2008). Only, in the United States the IT workforce has touched 4 million mark for the first time in 2008. Around 16 million people, regard project management, as their current profession.
A study from Standish group's CHAOS in 1995 found that in 16.2 percent of the all IT projects were successful in, meeting their time, scope and cost, and around 31 percent of projects were cancelled before completion. According to a study, conducted by Price Waterhouse Cooper, only 2.5 percent corporations consistently meet their requirements on time, and scope and costs for all types of projects.
IT projects have a terrible track record, which we can conclude from the studies conducted by different organizations.
Why it is critical:
Project management has been a key issue in sectors like IT, Aerospace and Construction. Over the years, it now has moved into every major industry. The pitfalls, if ignored, can be substantial.
€ Doing more with less -
An IT company simply expends more resources and staff time than would be needed without project management processes.
Projects will more likely, reach success if they're done in an organized and planned way using the standardized processes of project management which will ensure them to be on time and budget, which is a positive effect on the bottom line. This will help IT companies can have a better control over both their financial and physical as well as human resources.
€ Faster to market -
Saving time translates to cost savings. A formalized procedure will ensure that resources are being utilized more efficiently, so it's streamlined and one can have cost savings. Because, timing is critical for any market, poor project management can lead to loss of market share to competitors and sales growth opportunity.
€ Starting with best practices -
Sometimes to achieve the goals, people are burnt out. And if success is due to heroes, the results are less repeatable. Time is lost relearning how to do projects, the organization may have done in past, it is effective to build an organized record of how results, both positive and negative, were achieved so that future managers and teams may benefit.
€ Competitive advantage -
An adeptly performed project, one that exceeds customer demands, has a lasting effect on a company's reputation and credibility in the marketplace. Rather than any marketing campaign, a bigger difference with potential clients can be made through word of mouth. And, as surely, poor project management can negatively influence a company's relationship with its customers.
After adopting a formal management, IT outsourcing companies experienced a better shift in successful IT projects. According to the study conducted by the Standish Group's CHAOS the number of successful IT projects has more than doubled, from 16 percent in 1995 to 35 percent in 2006 and the number of failed projects decreased from 31 percent in 1994 to 19 percent in 2006.
Today, many tools have been developed to support Project Management some of them are Microsoft Project by Microsoft, HP project and portfolio software by HP, SAP PM is a module in SAP and many more.
If we look from the basic level a tool help to plan the project and manage them from start to finish and allow managers of different level to give input. The software can also carry out time management, cost management and budget management, resource allocation, communication management, quality management and administration.
According to PMI (Project Management Institute), USA the growth in PMP (Project Management Professional) certifications is increasing exponentially. In 1993 only 1000 executives had done PMP certification and this number had increased significantly to 50,000 in 2002 but in 2008, this number shoots up to a figure more than 0.3 million.
Recent trends affecting project management:
Globalization:
Instantaneous interaction, with billions of people, across the planet has been made possible because of the digital revolution.
Outsourcing and Offshoring:
While acquiring goods and/or sources from an outside source by an organization may be termed as Outsourcing, offshoring is often used to describe outsourcing from other countries.
Virtual teams:
Technology in recent times gives us an opportunity to work and access a particular network through communication wonders like VPN from anywhere across the world without being actually present in the physical location. Teams working in such conditions are coined as virtual teams.
In its simplest form, that's what project management is.
What managers deliver is nothing but profit, ROI, quality. The best ideas are always on paper, to execute them, with profits and in time, with quality through effective project management is the challenge that organizations face. Thus, project management has quickly made up its way to the radar screens of senior executives.
Most of the Indian IT Outsourcing companies today have a new or renewed interest in project management. The total global projections for spending on technology goods, services and staff reached $6-8 trillion from $2.4 trillion (2008). Only, in the United States the IT workforce has touched 4 million mark for the first time in 2008. Around 16 million people, regard project management, as their current profession.
A study from Standish group's CHAOS in 1995 found that in 16.2 percent of the all IT projects were successful in, meeting their time, scope and cost, and around 31 percent of projects were cancelled before completion. According to a study, conducted by Price Waterhouse Cooper, only 2.5 percent corporations consistently meet their requirements on time, and scope and costs for all types of projects.
IT projects have a terrible track record, which we can conclude from the studies conducted by different organizations.
Why it is critical:
Project management has been a key issue in sectors like IT, Aerospace and Construction. Over the years, it now has moved into every major industry. The pitfalls, if ignored, can be substantial.
€ Doing more with less -
An IT company simply expends more resources and staff time than would be needed without project management processes.
Projects will more likely, reach success if they're done in an organized and planned way using the standardized processes of project management which will ensure them to be on time and budget, which is a positive effect on the bottom line. This will help IT companies can have a better control over both their financial and physical as well as human resources.
€ Faster to market -
Saving time translates to cost savings. A formalized procedure will ensure that resources are being utilized more efficiently, so it's streamlined and one can have cost savings. Because, timing is critical for any market, poor project management can lead to loss of market share to competitors and sales growth opportunity.
€ Starting with best practices -
Sometimes to achieve the goals, people are burnt out. And if success is due to heroes, the results are less repeatable. Time is lost relearning how to do projects, the organization may have done in past, it is effective to build an organized record of how results, both positive and negative, were achieved so that future managers and teams may benefit.
€ Competitive advantage -
An adeptly performed project, one that exceeds customer demands, has a lasting effect on a company's reputation and credibility in the marketplace. Rather than any marketing campaign, a bigger difference with potential clients can be made through word of mouth. And, as surely, poor project management can negatively influence a company's relationship with its customers.
After adopting a formal management, IT outsourcing companies experienced a better shift in successful IT projects. According to the study conducted by the Standish Group's CHAOS the number of successful IT projects has more than doubled, from 16 percent in 1995 to 35 percent in 2006 and the number of failed projects decreased from 31 percent in 1994 to 19 percent in 2006.
Today, many tools have been developed to support Project Management some of them are Microsoft Project by Microsoft, HP project and portfolio software by HP, SAP PM is a module in SAP and many more.
If we look from the basic level a tool help to plan the project and manage them from start to finish and allow managers of different level to give input. The software can also carry out time management, cost management and budget management, resource allocation, communication management, quality management and administration.
According to PMI (Project Management Institute), USA the growth in PMP (Project Management Professional) certifications is increasing exponentially. In 1993 only 1000 executives had done PMP certification and this number had increased significantly to 50,000 in 2002 but in 2008, this number shoots up to a figure more than 0.3 million.
Recent trends affecting project management:
Globalization:
Instantaneous interaction, with billions of people, across the planet has been made possible because of the digital revolution.
Outsourcing and Offshoring:
While acquiring goods and/or sources from an outside source by an organization may be termed as Outsourcing, offshoring is often used to describe outsourcing from other countries.
Virtual teams:
Technology in recent times gives us an opportunity to work and access a particular network through communication wonders like VPN from anywhere across the world without being actually present in the physical location. Teams working in such conditions are coined as virtual teams.
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