Why IT Projects Fail
In my 5 years of CTO experience, I have come across many companies that are struggling to get their IT projects completed, mainly related to customized web applications or mobile application development.
After analyzing the situation, I have concluded that there are many companies that just target to win the project instead of thinking about delivering it. Many times this happens because the sales team targeting the project is only interested in generating sales; they are not very concerned about technical challenges or solutions.
Sometimes the company doesn't have much experience working on big projects or has less experienced project managers. There are many other reasons that may lead to the failure of the project where it gets stuck in between. I have summarized 10 key points that a company should consider before hiring IT services for their project.
1. Provide Detailed Project Requirements
A very detailed project plan is a must for successful project delivery. Having no detail or very limited project requirements & plan is the main reason for project failure.
I believe if any company or person is looking to get their project developed & unsure about exact project requirements, they must first work on that. Due to a lack of proper details, companies may not understand the whole project & give a commitment on projects that are beyond their capabilities.
The Risk: Undefined or incorrect requirements lead to a lot of reworking on the same modules. This causes the project to stretch significantly and often leads to failure due to budget conflicts at a later stage.
2. Discuss with the Technical Team
After a detailed plan, it is a must to discuss the project in detail with the technical team. Ensure the project goal, scope, and features are clearly conveyed & understood by them properly.
If you give a documented project scope but the technical team has not understood it, the project may go in the wrong direction. Writing documents gives better clarity, but it is practically proved that written as well as verbal communication is more effective than just written or just verbal.
3. Check the Track Record
For successful project delivery, it is important to check the track record of a team or company.
- Simple Projects: Just check the level of projects the company has developed already to see if they are capable.
- Complex Projects: They should have done a similar type of project or have a track record of doing tricky projects that require study & research.
Companies that are not ready to go off the beaten track may give up if your project becomes tricky. It's not possible for companies to always be perfect, but they must be ready to take challenges & have proven experience working on projects that require analytical skills.
4. Ensure References are True
It is observed that sometimes salespeople give fake references just to obtain the project. Never get trapped by just looking at references.
Ask appropriate questions to ensure the references provided are true & they know all about the project. If the company has developed the project, they may have a copy of the source code & a development branch code on their server too. These are good ways to verify authenticity.
5. Discuss the Development Methodology
Any company that has the right project development approach will have lower chances of failure. A project should be divided into multiple phases.
[Image of software development lifecycle phases]You can ask how the company will ensure successful project delivery. If they are not able to provide a satisfactory answer, that is a concern.
- Requirement Gathering: Collecting all necessary details.
- Planning: Creating a detailed roadmap.
- Design: Visualizing the solution before coding.
- Development: The actual coding phase.
- Testing: ensuring quality assurance.
If the team doesn't have a plan for critical areas of the project, they are likely to get stuck. While no one can provide a perfectly detailed plan upfront, they should have done research for critical areas.
6. Don't Get Trapped by Budget
Budget is one of the main reasons for project failure. It is a lucrative trap. Any IT company that considers the right approach will require significant effort & time, meaning the budget is likely to go higher.
Some companies don't give much importance to research, planning, and designing, focusing only on development to keep the budget low. This leads to many modules being left unplanned. Later, when these modules are needed, companies with low budgets may deny working on them.
Spending a low budget on a project may be like wasting money because the project may never be completed properly.
7. Seek a Detailed Project Plan
Even if you have to pay for a detailed plan, go for it. A detailed plan takes time, and companies hesitate to do that for free because many people take the plan and go to other companies. Pay for the detailed plan to ensure a strong foundation for your project.
8. Check Project Manager Qualifications
A qualified & experienced project manager has the knowledge to keep your project on the right track. There is a famous saying: "Many years of mistakes become your experience." Someone who doesn't have experience may not know what mistakes to avoid.
9. Check Video Testimonials
Testimonials are a good source to know how a company has performed. However, text testimonials can be easily faked. If a company has video testimonials, there are higher chances that they are genuine.
10. In-House Team vs. Outsourcing
There are many agencies or individual managers that take projects and outsource them to others. In this model, failure chances are high as the manager may not have full control of the team.
Hiring a company with a direct, in-house team can be the key to success. If the company has their own in-house team, they will have better control over the developers and the project timeline.
