In a five-year first, India has shown a spurt in successful execution of projects and has also overtaken China and the Middle East on the key indicator of money wasted, a study by a global non-profit said.
“For the first time in five years, more projects are meeting original goals and business intent while being completed within budget and that fewer projects are deemed failures,” the Project Management Institute said. It said India reported the lowest average monetary waste on projects of USD 73 million per USD 1 billion, followed by both China and the Middle East at USD 82 million per USD 1 billion each.
Explaining the reasons behind how such a change occurs, PMI’s managing director for the country Raj Kalady said, “A formal approach to project and programme management can be the link that ensures that an organisation has the capabilities for change and strategy execution that it needs.”
Globally, corporations were able to reduce the wastage on project executions by over 20 per cent to USD 97 million in 2016 from the year ago’s USD 122 million.
Among the sectors, healthcare showed the worse losses at USD 112 million per USD 1 billion, followed by telecom (USD 106 million), energy (USD 101 million), Government (USD 97 million) and construction (USD 94 million), while information technology was the lowest at USD 78 million of losses per USD 1 billion.