Truths About IT Costs

A Harvard Business Review article The Truths About IT Costs lists seven ‘truths’ about IT costs. These are:

  1. Enhancements often don’t deliver results commensurate with their costs.
  2. Projects are often too big and take too long, partly because unnecessary functionality is built into applications.
  3. Previously purchased applications and infrastructure technology are often underutilized.
  4. Project failure rates are too high.
  5. Tech teams do not have sufficient incentive to achieve high quality, and quality is often not measured.
  6. Managers don’t know enough about the systems that support their areas.
  7. IT is too risk averse: “No one ever got fired for buying IBM or Microsoft.”

The article reads like some consultants’ reports – addressing problems at a high-level, with a few key recommendations; but when you think about it for a while you wonder how to practically implement the recommendations.

Update: see also Michael Krigsman’s critical blog


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