A study has estimated that only 26 per cent of the projects undertaken has succeeded with 46 per cent of the projects getting stalled and the remaining 28 per cent failing completely.
Further, 89 per cent of the projects faced significant cost overruns, said Shine Sahadevan, Head – IT Vertical, Project Management Institute (PMI).
Quoting a study conducted by the global professional services firm KPMG, he went on to state that 45 per cent of the functions provided in a newly-installed system was never utilised at all.
He was addressing a one-day ‘Project Management Workshop' organised here on Tuesday by the Confederation of Indian Industry (CII) and PMI.
The PMI is a not-for-profit membership association for the project management profession, with more than half a million members and credential holders in 185 countries.
At 32 per cent, problems in project management were found to be the major reason for this state of affairs with technical and communication problems being others. A PMI study with London-based weekly newsmagazine ‘The Economist' found that many companies wanted their staff to have the ability to execute projects and implement strategic change to suit the client's requirements.
The demand for project management staff in India was projected to grow from to 2,15,187 in 2012 from 96,400 in 2007-08, said Mr. Sahadevan.
Speaking later, Ondiappan Arivazhagan, Chief Executive Officer, International Institute of Project Management (IIPM), said that many got confused a project manager with a technical manager.
“A project manager looks after other areas such as management of cost, time, quality, risk and scope.”
A good project management and a good project manager could influence the course of project execution and make it efficient, he added.
Speaking earlier, Shyam Prakash Gupta, vice-chairman, CII Madurai Zone, said that the workshop was intended at arriving at a common understanding of the Project Managers for building effective partnerships, managing capacity and delivering the expected results.
In collaboration with PMI, CII, Southern Region, is organising a series of such capacity building workshops on project management across the region.