Why Use Portfolio Management?

Most large companies are reeling from the weight of supporting and maintaining redundant applications and PMO departments. AMR Research (now part of Gartner) states that “85 percent of IT budgets are spent on maintaining current operations,” and “75 percent of IT organizations have little oversight over their project portfolios and employ nonrepeatable, chaotic planning processes.”¹

Often these statistics are a result of factors such as the following:

• A buying splurge during the dot-com days.
• Multiple mergers and acquisitions that have created a complex application network and interfaces.
• Inadequate planning or lack of direction. Different business units following different paths (silos) to meet their IT requirements.