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January 23, 2007

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JS

I can answer your question-- IT project overruns can bankrupt a company. One smart escape hatch for managers is to move an outsourced IT project in-house, or vice-versa. During the transition, the manager can blame either the outside consultant, or the failed in-house team, and can reduce the scope of the project to something that is more manageable. The manager will look good if he is able to reduce the size of the project budget, which will immediately improve cash flow. I suppose the real problem occurs of the project is a critical system that the company really needs-- then it may be time to look for a new job.

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