Saving project money in tight times

7. February 2010 by admin.

Computerworld has quoted from a Panorama consulting report that shows how companies are saving money during software implementations in these recessionary times:

1. A decrease of over 20 percent from 2008 to 2010 is attributed to efforts to limit IT budgets and reduce implementation scopes in response to weak economic conditions. The tradeoff to these reduced implementation costs is that companies are less satisfied with their ERP investments than in years past.

2. Decreasing implementation timelines can be partially attributed to a weak economy which has forced companies to more tightly manage implementations. Further, a number of companies decreased the scope of their enterprise software initiatives.

3. The survey found that 54 percent of ERP implementations went over budget, a slight decrease from the 2008 data when 59 percent of implementations cost more than planned.  The finding is attributed to the fact that many organizations in the study failed to identify and budget implementation costs not attributable to software vendors, such as project management, organizational change management, hardware upgrades and the like.

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