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Reduction of costs

All businesses want to save money when it comes to expenses. That initiative sounds great, but it can cost more than the planned savings if you apply that approach to all of your IT projects.

Allocating insufficient and small budgets for your projects will result in the procurement of poorer resources for that project.

Initially underfunded projects have very poor and very late (and often no) return on investment, and often lack functions or have quality problems. The lesson is simple. Set aside enough budget to hire the right people for the job. Define a sufficient budget to commit all the resources needed for the success of that project. Only developers don’t build a team for an IT project; you also need a business analyst, testers and project manager.

Here again there is a problem with communication.

E.g:

The financial team (which in most cases is the initiator of cost reduction, which is understandable because this sector is always a strategic priority), does not understand IT language, and on the other hand the IT team does not speak financial language. And here we get mostly lost in translation situation 😉.

Many years of experience in the IT sector, especially in management positions, has shown me that Finance will never learn to read and speak IT.

Which means that we in middle- and senior-level IT must learn to speak and write financial language to prevent either budget rejections or disproportionate cost reductions.

Namely, we must learn that everything we present to Finance (and the business itself) can be formulated in two terms in the language of finance, namely Total Cost of Ownership (TCO) and Return on Investment (ROI).

Proper application of the project methodology can help in this. By applying and incorporating PRINCE 2 into the business itself, we enable the IT sector to learn financial terms faster (such as Business benefit), how to measurably present the business benefits of IT projects, and successfully realize those benefits through IT projects.

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