Services firms risk IT cash

Corporates are gambling with their IT budgets because services companies are not properly investigate the risks of contracts, according to researchers Spikes Cavell.

The study, commissioned by Bull, surveyed more than 200 IT project managers from The Times top 100 companies to discover the 10 main reasons projects failed.

It found that almost all customers believed understanding project risks was crucial, but only six per cent of the IT service suppliers thought risk management was essential to project management.

Most service suppliers - 92 per cent - also believed the risk should be completely carried by the user.

Stephen Meyler, systems integration business development manager at Bull, said it was 'incredible that people are paying lip service to risk management', with average project investment being between #500,000 and #5 million.

Risks included poor communication, planning and budget control and, according to almost 20 per cent of those surveyed, there were signs that projects were failing.

Another 21 per cent believed anticipating risks was the key to project success and a further 10 per cent said contingency planning against risks was important.

Meyler said: 'Projects do run into trouble and to counter that we believe it's essential to prepare to deal with the risk at the outset.'

Poor communication, a lack of planning and missing deadlines were cited as the three top reasons for IT project failure.