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Initiation Phase of a Large IT Program: Key Points to Keep in Mind

  • Initiation Phase of a Large IT Program: Key Points to Keep in Mind-

    Budget management

    This process is involved in estimating, budgeting and controlling costs to complete the project within the approved budget. It requires that managers create and manage the budget effectively to yield maximum profitability.

    • Financial management – This activity provides the processes and the financial checks and balances required for the program to meet its financial commitment.
    • Contract management – The activity includes the legal framework to engage with its clients, vendors and suppliers.
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Initiation Phase of a Large IT Program: Key Points to Keep in Mind

  • 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8
  • Initiation Phase of a Large IT Program: Key Points to Keep in Mind-4

    Budget management

    This process is involved in estimating, budgeting and controlling costs to complete the project within the approved budget. It requires that managers create and manage the budget effectively to yield maximum profitability.

    • Financial management – This activity provides the processes and the financial checks and balances required for the program to meet its financial commitment.
    • Contract management – The activity includes the legal framework to engage with its clients, vendors and suppliers.

Many global companies are using business transformation initiatives to meet changing market needs. Implementing large IT programs is a key component of these change initiatives. Given that the failures of such programs are now commonly discussed, a recent McKinsey/Oxford study highlights that the failure rate of such programs is indeed more often. According to the study, half of IT projects with budgets of over $15 million run 45 percent over budget, and 7 percent are behind schedule and deliver 56 percent less functionality than predicted. What should organizations do to mitigate failure of such programs, and successfully implement their program?

According to Virtusa, most IT programs struggle during the initiation phase since key program management activities are not completed to effectively start the program. This leads to longer startup times and missed budget targets, even before the program begins. The model outlined by Naushad Kapasi, associate director – client services at Virtusa Corporation, contains the key activities that need to be completed during program initiation.