PMI in News
Project ManagementThe Times of India | Oct 4, 2010
The main reason that trained project managers are the need of the hour is the continued time and cost overruns in projects that indicates lack of training of project managers
While we know that a substantive push required to maintain 9 % GDP growth, the 11th Plan has a 20.5 lakh crore investment required by Central and State Governments and Private sector including PPP in key infrastructure (power, road, bridges, telecom, railways, urban transport, irrigation, water supply and sanitation, ports, airports, storage, petroleum and natural gas).
Need for high quality trained project managers
Investment in infrastructure in the 11th Plan underscores the need for better project management in all sectors to steer timely delivery and within approved cost. At present, project managers in government and private sectors may have good domain engineering knowledge and experience, but many of them lack formal training and certification in project management. The main reason that trained project managers are the need of the hour is the continued time and cost overruns in projects that indicates lack of training of project managers.
Just looking at the central sector megaprojects (above 150 crore), 306 have time overruns, and 203 have cost overrun. The cost of these overruns is a massive, Rs.1, 05,237 crore. That is a loss of Rs.20, 000 to Rs.25, 000 crore a year, given that a typical project runs three years. Even if fraction of it is spent on training, it will lead to substantial savings in cost overrun.
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