India improves its project execution rate; wasted least

Mumbai, Feb. 10: 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 on Friday.

“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 $73 million per $1 billion, followed by both China and the Middle East at $82 million per $1 billion each.

Explaining the reasons behind how such a change occurs, Project Management Institute’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 $97 million in 2016 from $122 million in the pervious year.

Among the sectors, healthcare showed the worst losses at $112 million per $1 billion, followed by telecom ($106 million), energy ($101 million), government ($97 million) and construction ($94 million), while information technology was the lowest at $78 million of losses per $1 billion, the report said. — PTI

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 — PMI