Towards a framework to address governance requirements of IT projects in the South African banking industry

Abstract

Project success is vitally important for companies to execute and achieve their strate-gies, as well as carry out their visions. Today, more than ever before, companies oper-ate under tremendous strain to deliver results rapidly and, at the same time, remain viable and adaptable. Many organisations face multiple constraints in the process of implementing successful governance structures, especially where meaningful information technology (IT) deals are involved. Every organisation is confronted by problems exclusive to itself as each organization’s ecological, political, geographical, economic and social issues are unique. Research has indicated that IT projects are likely to fail where governance is lacking due to organizational limitations. Each of the mentioned challenges is capable of giving rise to difficulties that make the provision of effectual governance impossible, or challenging. Investments by financial institutions in South Africa in IT projects can conservatively be estimated at billions of rands. Given such colossal investment amounts, there is concern as to why there is still a lack of cooperation between various banking institutions in developing unified standards and procedures which result in successful management of IT projects. The unified standards would ensure that the investments in IT generate business value and mitigate the risks associated with IT, an integral part of the overall business delivery. IT governance is an integral part of corporate governance and en-sures that IT goals are met, and attendant risks are mitigated. IT governance powers ensures alignment between IT investment and programme delivery, and must justly measure accomplishments. This study was undertaken to evaluate and establish the reasons why IT project man-agement and IT regulatory governance fail within the South African banking industry. The objectives of the study were to find ways of addressing the way in which IT project management and regulatory governance are implemented so as to address project fail-ures. Another objective was to recommend frameworks which would usher in positive impacts on IT project implementation and develop effective IT regulatory standards for the South African banking sector. The findings of the study reflected that IT projects should be directed from the very top of organisations. The boards of directors and senior management should take owner-ship of IT projects and governance issues. The findings also revealed that there is a need for supervision by the boards of directors. This ensures that investments made in IT systems produce reasonable returns for the institutions. Regular checks of IT systems and governance compliance are essential to ensure enforcement. The research results were explained and equated to the studied information.