Despite perceptions that IT projects today are “ROI’d to death”, organizations are still struggling to control demand for IT services and allocate scarce resources to where they are of most value.

There are plenty of IT projects that still receive funding when they shouldn’t, with organizations constantly weighed down by having to maintain applications they should pull the plug on, according to Michael Green, regional director of Compuware Australia/New Zealand.

“While return on investment is almost mandatory when it comes to large strategic IT projects, many smaller projects and the vast majority of existing applications are not subjected to the same levels of scrutiny,” he said. “ROI is a great indicator of success but if it’s not used consistently organizations cannot compare apples with apples when making IT investment decisions.”

Green believes organizations could save money on existing IT systems, free up resources to take on more strategic IT projects, and better align their IT expenditure with business objectives by adopting a portfolio management approach to their IT projects and applications.

“The skills shortage is a major driver for IT portfolio management because there is never going to be enough resources to meet all IT service demands,” he said. “That is why you need consistent methodologies and tools to ensure scarce IT skills are applied where they add the most value.”