The truth about your IT suppliers

IT suppliers do very well out of their customers. They make healthy margins while in some cases, under-delivering. In fact, it can sometimes seem that while the profits are all theirs, the risks are all yours.

Clients in finance, healthcare, packaged goods, housing, education and leisure have all been identified in research as problem sectors, in some cases seeing supplier margins of more than 40% higher than average.

Take a look at some recent industry statistics. And if they send a shiver down your spine, consider K-Zen. We can help if:

  • You want smarter, faster and more efficient IT
  • You want an independent view of how you can drive savings without compromising the quality and services delivered by key suppliers
  • You need to get IT projects, requirements and internal support back on track with the business objectives, quickly

We can help you find the right suppliers and pay the right fees for their services, ensuring that you and your team can deliver on time and on budget, every time.

Expensive, Late...

...and it could even kill off your company!

In one recent study, covering 5,400 IT projects with initial budgets of more than £10 million, it was found that on average, these big projects come in:

  • 45% over budget
  • 7% over time

Worse still, they can deliver 56% less value than promised. In fact, 17% of large projects go so badly that they can threaten the very existence of the company!

Source: McKinsey & Company in conjunction with the University of Oxford, 2012

Doomed to fail from the start?

In recent interviews with people involved in software development, researchers found that even at the outset, many in the industry expect their projects to fail!

  • of project participants lack confidence that their projects will succeed, thanks to “fuzzy business objectives, out-of-sync stakeholders and excessive rework”
  • agreed that “the business is usually or always out of sync with project requirements”
Source: Interviews by Geneca with 600 respondents

Is failure the new normal?

In a recent survey, management consultant KPMG found that many IT project managers accept failure as an inevitability.

  • of organisations suffered at least one project failure in just one year
  • of project managers consistently expect their projects to fail
Source: KPMG Project Management Survey (100 businesses)

Too many ways to fail?

IT services giant IBM recently conducted a survey on the success or otherwise of what it calls ‘change projects’. The findings make dismal reading, with just 40% of projects meeting their schedule, budget and quality objectives. Reasons include the following:

  • Changing mindsets and attitudes
  • Nature or style of corporate culture
  • Lack of senior management support
  • Underestimation of project complexity
Source: IBM survey of 1,500 change management executives

Ever wake up in a cold sweat, worried that...

  1. Your IT suppliers are taking advantage?
  2. Your IT projects will miss their objectives, and run late or over budget?
  3. Your IT expenditure will deliver less value than budgeted?
  4. Your employees will not adopt your new IT platform as planned?
  5. Your IT project could go so badly it threatens the business?
  6. You can’t justify continued IT investment, if this project fails?
  7. Your IT project could become one of the statistics on this page?
Contact us to find out how we could help you sleep at night!
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