In IT organizations, the role of the IT project manager is critical. New technology adoption, regulatory compliance, outsourcing, remote/hybrid work, and the ever-present mandate to do more with less make it crucial that projects be adequately planned and controlled. Because of this constant need for change, rightsizing the project management staff is an ongoing priority for IT leaders.
Since most of the work in IT organizations is project-based, IT leaders realize that project management is critical to delivering successful projects, which adds significant value to the business. While project managers do not guarantee successful projects, they improve the odds. IT projects are notorious for costly overruns, if not outright failure. Effective project management plays a crucial role in mitigating such risks.
It is no surprise, then, that the number of project managers as a percentage of the total IT staff has been steadily increasing to meet these needs. As shown in Figure 1 from our full report, IT Project Management Staffing Ratios, project managers in 2022 and 2023 made up 6.0% of the IT staff at the median, the highest percentage in recent years.
However, project managers may still face some challenges. The rise in the hybrid work model is pushing them to recreate business and project management processes to reflect a more dispersed workforce. Project managers must devise ways beyond conventional team management to ensure effective management and budget adherence. Embracing a blend of tools, such as digital workplace technologies, and leadership styles to effectively navigate working with hybrid teams is essential.
Still, too much project management can be as bad as too little. Too many project managers will likely mean developers feel micromanaged, with too many meetings and status reports. This adds overhead costs to projects without adding value. On the other hand, too few project managers can cause project delays or failure. Adding layers of management and complexity can reduce the speed and agility of the business. Many development best practices, such as Agile and DevOps, call for fast, iterative deployment. Project coordination and facilitation are needed in agile processes. However, too much emphasis on project management, as traditionally understood, can create unnecessary administrative overhead.
“The number and diversity of IT projects is growing with digital transformation, and we expect continued growth for this role,” said Waynelle John, research analyst for Avasant Research, based in Los Angeles. “Emerging technologies like Gen AI will continue to reshape work and the way it is managed.”
So, how much project management is the right amount? This can be a particularly vexing question for CIOs. The penalties for insufficient project management can be severe and a significant portion of capital investment can be placed at risk. On the other hand, project micromanagement can also be harmful.
In our full report, we examine the question of how many project managers a typical IT organization requires. We present five benchmarks: project managers as a percentage of the IT staff, project managers as a percentage of the delivery group, users per project manager, applications per project manager, and application developers per project manager. All these ratios are presented based on organization size. In addition, we look at the influence of the key ratios on a sector basis. We conclude with recommendations on assessing the performance of the project management function.
This Research Byte is a brief overview of our report on this subject, IT Project Management Staffing Ratios . The full report is available at no charge for subscribers, or it may be purchased by non-clients directly from our website (click for pricing).