Using Structural Equation Modeling Approach Discovering the Impact of Project Portfolio Management on Organizational Performance among the selected Information Technology Companies in Chennai City

Abstract

Project and Portfolio Management (PPM) is a recognized approach that an organization can practice to orchestrate, prioritize and benefit from projects. This approach examines the risk and reward of each project, the available funds, the likelihood of a project's duration, and the expected outcomes. According to the results of McKinsey & Company in conjunction with the University of Oxford Study on large scale IT Projects on 2012, 17 percent of large IT projects go so badly that they can threaten the very existence of the company and on average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted, which indicates the need of adoption of Project and Portfolio Management strategies in Information Technology (IT) companies. The main aim of the study is to discover the relationship between the project portfolio management strategies and organizational performance in selected IT companies in Chennai city. The sample size of the research is 100 employees those who are working as Project Portfolio Managers, Project Managers and senior executives with minimum 10 years of working experience in top 10 IT-BPM companies in 2014–2015 as ranked by NASSCOM. The outcome of the study indicates that there is a robust relationship exist between the project portfolio management strategies and organizational performance.