INVESTIGATE THE CRITICAL SUCCESS FACTORS IN IT PROJECTS DEPENDING ON AGILE METHODOLOGY

ABSTRACT

Currently, all sectors of the economy are rapidly integrating information technology (IT). There is a need for IT projects, mainly in IT systems, infrastructure and automation. More and more companies are spending a certain percentage of their annual budget on IT projects as part of their annual plan. Compliance with project deadlines, initial budget and initial project scope are the main parameters of the project, which should be determined by the project manager, regardless of the industry. This article discusses certain factors and their influence on the parameters of the design triangle in IT industry projects.

Keywords: critical success factors, CSFs, project management, agile, scrum, kanban, IT industry, Kazakhstan.

The integration of information technology (IT) projects in most industries are very important, as its results affect product lines, provision and maintenance of services. There is a lot of demand for IT projects as companies depend on IT systems as they become more and more automated. Investments in the form of a large amount of money or a percentage of the company's annual budget are financed to automate processes and invest in IT projects. It also includes taking risks and innovating on the part of the company to develop IT projects (Force, 2003). However, most IT projects are over budget, delayed, or do not reach their first performance targets. Overestimations and underestimations are made in the triangle of the project - volume, time and budget. For this reason, the study of critical success factors (CSF) in IT projects is an attractive topic to search for, as it meets the current needs of the global community.

Currently, the IT sector needs to minimize 3 design parameters that are overestimated in most projects. To do this, it is necessary to identify the CSF. Project monitoring should be carried out regularly to stimulate decision-making processes.

In 2020, the Kazakhstani IT market exceeded $1.35 billion, and the number of companies representing this industry operating in the country amounted to more than 10,000. (Kozlov, 2021) One of the goals of the government of the Republic of Kazakhstan is to increase the export of IT products to 500 million USD and train about 100,000 new highly qualified IT professionals by 2025.

There is a strong demand for IT projects that must be completed on time and within the project triangle. The identification of critical success factors could lead to changes in this particular area of the IT sector in Kazakhstan.

According to the PMI Pulse of the Profession 2021 survey, in the IT industry, 75% of respondents said that the project has achieved its goals, and 11% consider the project development to be unsuccessful. In terms of agile methods, 49% of respondents indicated that their project achieved its goals. They explained that the reason was the lack of agile practice and background, as well as many other aspects. These statistics reflect that even if agile methodologies are effective, some factors contribute to project failure.

Agile project management methodologies for developing IT projects have been around since the 1990s. The Agile Manifesto, published in 2001, was the starting point when the development community realized that requirements evolve and cannot be fully defined upfront. Today, there are several methodologies, environments and processes for developing IT projects that embody the values and principles of the Agile Manifesto, for example, Scrum, Kanban, etc.

The official definition of agile software development was given in the form of a "manifesto" in February 2001 by a group of 17 prominent software process methodologists who attended a summit meeting to advocate for the best way to develop software, and then formed the Agile Alliance. The Agile Manifesto, posted on the Agile Alliance website, states the following:

We define the best ways to develop software by doing it and helping others to do it. Thanks to this work, we have come to the value of:

• People and interactions are more important than processes and tools;
• Working software for comprehensive documentation;
• Cooperation with clients during contract negotiations;
• Responding to change instead of following a plan.

Despite the PMBoK methodologies, methods, and structures, Agile is not based on specific processes or even process elements (Larman, 2004). Mitchell (2016) identified three flexible styles in his systematic review of the literature: teaching, coaching, and counseling. However, there is an official interpretation of Agile in the Agile Manifesto, which presents the 12 core principles of Agile. Larman (2004) developed the theoretical understanding of Agile by presenting a detailed statement of practical principles that are much more specific than the 12 official principles:

- the needs of the client are understood by everyone;

- processes and organizational structures are simplified as much as possible;

- work is done in short cycles (iterations);

- systematic receipt and use of feedback;

- maximum authority for performers;

- intrinsic motivation;

The Critical Success Factor (CSF) approach to defining and measuring organizational performance was defined by Bullen and Rockhart (1981) as "a limited number of areas in which satisfactory results will ensure the successful competitiveness of an individual, department, or organization." The CSF is a few key areas where “everything has to go right” for the business to flourish and the goals of the managers to be achieved.”

CSFs in IT projects are related to fundamental project management practices (Reel, 1999) or a combination of IT project development and business strategy (Bytheway, 1999). CSF in IT projects consists of various aspects, from the development life cycle, assessment and analysis to executive leadership, project management and planning at the resource and strategic levels (Bosghossian, 2002). CSF can be defined as the factors that must be present for the success of an Agile project.

This article provides a brief introduction, the key concepts of Agile, a brief background, and the critical Agile factors that help projects be more successful. The Agile concept has been scrutinized in much the same way as the CSF concept.

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