Recent research by various reputable institutes reveals that 75% of the IT organizations have very little oversight and visibility over their IT project portfolios. This leads to a chaotic planning and management process. Let’s see IT portfolio management.
IT portfolio management is a powerful tool for firms to gain control of their IT projects and deliver purposeful value to their business.
IT project portfolio management is a holistic approach to managing and organizing the organization’s IT project strategy. Both IT and business leaders collaborate to identify and work on project proposals by matching them with the organization’s objectives.
The question remains- Does Your Company Need IT Portfolio Management?
Let’s find out.
Why Do IT Firms Need IT Portfolio Management?
Every business is trying to incorporate technology into their products and services, and therefore, IT companies are in huge demand. IT companies face various challenges while managing their project portfolios-
- No definite process for reviewing project proposals
- Substantial project load with limited resources
- Redundant projects replacing good IT projects
- No visibility in the workflow of the projects
- Weak IT governance structures
- Projects not matching the organization’s objective
- The organization not building good businesses cases for IT projects
All these factors are not just bad for your business but for your overall brand image as well. Without any solution to these challenges, your IT firm may lose out on important clients and brand credibility in the long run.
IT portfolio management can be a solution to all your IT-related organizational challenges.
- Increase the value of your IT investments while reducing the risk
- Enhance communication, collaboration, and alignment between IS and business leaders
- Encourages responsibility and accountability by fostering team collaborations and eliminating departmental silos.
- Allow planners for more efficient scheduling and resource allocation.
- Minimizes the number of redundant projects and makes it simpler to kill projects.
All these benefits will ultimately lead to generating more pennies in your account. Top IT executives claim that efficient IT project portfolio management reduces overall IT application expenditure by 20%.
Recent studies suggest that with portfolio management, firms can reduce their overall IT budget by 3-5%.
Although various methodologies are available, IT portfolio management needs to be customized according to your organizational needs. There are certain specific principles and best practices that your company needs to follow to gain the best out of the portfolio management solutions.
Best Practices In Managing IT Project Investment Portfolio
- Gather all the IT project-related information and prepare an inventory. A holistic approach to the IT projects in the organization helps store all the relevant project details in a single database.
- Evaluate and identify the projects that match organizational objectives. A senior council can compile good business cases based on ROI, estimated costs, business benefits, and risk assessment. All the projects with questionable business value can be eliminated.
- Categorize projects and prioritize fund allocation to projects that most closely align with a firm’s goals and objectives.
IT project portfolio management services are a boon for IT organizations dealing with numerous projects and want to expand more in the future. It helps an organization to reduce discrepancies and improves productivity.