The Ultimate Guide to Managing Risk in IT Project Transitions

Digital transformation impacts everyone connected to the internet, from web and mobile application owners to cloud managers and enterprise information system administrators. This transformation encompasses the automation of routine tasks, the deployment of AI for data analytics, the integration of cloud and mobile technologies, and the connection of devices to the Internet of Things (IoT) infrastructure. Such advancements necessitate a singular approach: transitioning IT projects to new service providers. Given the complexity of transitioning IT projects, it is crucial to understand the associated risks to ensure successful completion. Our research indicates that 60% of IT projects encounter transition-related challenges, leading to time overruns and additional financial costs. A critical factor in addressing these issues is the development of a comprehensive software transition plan.

For those in a hurry:

• Problem: Data loss, business interruption, financial loss.
• Solutions: Planning, documentation, technical review.

For those interested, below we explore how to minimize risks and ensure a smooth IT transition to new vendors. We’ll also outline the reasons for making the switch and the anticipated benefits. By the end of this article, you are to understand why such a transformation is necessary and how to execute it with minimal disruption.

“Failing to plan is planning to fail.” — Alan Lakein.

Risk mitigation methods for IT project transition

Before moving on to risk mitigation techniques, we should outline the reasons for migrating to a new IT vendor. However, the motivation for IT migration can be purpose-driven — the need to improve business processes, increase efficiency and adapt to changes in the market. But we’ll return to reasons because they provide a more stable frame of reference within which companies can decide wether to change IT vendors. In the meantime, try to identify the following reasons for IT migration as they apply to your organization your digital project:

1. Poor quality of service

Slow problem resolution, poor quality technical support, or unreliable task completion are typical shortcomings of current IT vendors. Relevant to software development, help desk, data management and cloud services.

• Technological limitations

This aspect states that due to incompetence, some current IT companies may not support technologies such as cloud computing, AI, machine learning, and 5G, the mastery of which is a must to remain competitive.

• Changes in business needs & strategy

Your company may be changing its business model, and your current vendor may not be able to support it. More broadly, it’s about scaling the business, changing business processes, or introducing new capabilities.

• Integration issues

This is relevant when working with inexperienced partners: Difficulty integrating systems or applications leads to inefficiencies and outages. This is more than a serious reason to think about change, and delaying it can lead to an exit from the IT game.

• Contractual or Legal Issues

As the digital space becomes increasingly regulated — the Digital Services Act and the Digital Markets Act in the European Union — you may encounter contractual issues with your current provider. These are unfavorable terms or inconsistencies with the law, which should also prompt you to look for an alternative provider.

If your business meets at least one of the above criteria, it’s your time to consider a digital migration to a new IT platform. You can avoid the consequences of this procrastination with the following migration precautions and strategies.

What is the right way to IT-migrate?

There are proven methods for migrating IT projects from one digital platform to another that minimize risk. But first, a few words about the risks involved. Among the most common are:

1. Integration difficulties. On the verge of crossing the old platform with the new, there may be difficulties with API compatibility, data synchronization, and system compatibility in terms of functionality. All of this affects performance — it drops.
2. Security threats. Risks are driven by the most common cyber threats — data breaches. The solution is experienced IT companies that have already made a name for themselves in the industry. SECL Group, for example, has been on the market for 20 years and its clients include Kia, Danone, and PepsiCo.
3. The problem of user adaptation. The solution is staff training.
4. Failure to meet regulatory requirements. We are talking about challenges related to the legislation on the territorial jurisdiction of which your company operates.

Common IT migration methods include careful software transition planning, data backup, technical audits, and regular testing at all stages of the transition. As most modern IT services are migrating to the cloud, the following two SECL Group approaches should help you:

1. Planning and Implementing a Pilot Project:
   1. Pilot Project: Prior to a full migration, it is recommended that you conduct a pilot project with a limited amount of data and applications. This allows you to identify potential issues and test solutions in a real-world environment, minimizing the risks of a full migration.
2. Use the “7 Rs” strategy:
   1. Rehost (Lift and Shift) — a quick and easy way to move existing applications to the cloud without changing them. Disadvantage: Limited long-term cost optimization and scalability.
   2. Replatform (Lift and Reshape) — this involves migrating applications with adaptation to cloud capabilities, including containerization and use of cloud services. The benefits are improved performance and scalability.

The choice of IT migration strategy depends on business requirements, technical competencies, resources, and the issues being addressed. However, it is generally accepted that while a pilot project helps minimize risks, the “7 Rs” (Rehost, Replatform, Refactor, Repurchase, Retire, Retain, Relocate) strategy can be a more optimal choice for migration driven by application complexity towards simplification, short-term goals, and technical constraints.

Risk assessment checklist

“The best way to predict the future is to invent it.” — Alan Kay.

Future trends in IT project transitions

The future of IT projects will be driven by new technologies and methodologies that may change approaches to risk management and transitions. Among the challenges is the rapid evolution of technology, which can provide both benefits and challenges. The solution is hybrid solutions and continuous adaptation to new technologies and integration of modern risk management techniques. Automation reduces the likelihood of errors, and artificial intelligence helps predict problems. A bold look beyond the horizon of IT-migration:

1. Hybrid and multi-cloud strategies.
2. 5G and ultra-fast networks.
3. Artificial Intelligence and Machine Learning.
4. Low-code development.
5. Digital twins and virtual reality.
6. Generative AI.

These trends reflect ambitions that will help organizations adapt to the rapidly changing technology landscape and ensure successful IT project transitions. Learn more from McKinsey.

Bottom line

Successful IT projects require meticulous planning for software transitions, effective risk management, and adaptation to new technologies. By understanding potential issues and applying proven strategies, your organization can minimize disruption and facilitate a smooth transition to new vendors, laying the groundwork for future growth and innovation. Using a checklist, maintaining a forward-thinking approach, and monitoring IT industry trends are desirable for success.