IT departments and business units in financial services firms do not understand each other enough to ensure that projects are managed appropriately.
Businesses should create a management layer above both groups to ensure all projects are managed well.
According to research from Cass Business School and ea Consulting Group, IT is the only division of financial services firms that can see all the projects in the pipeline and is therefore the only company unit that can make decisions on priorities.
As a result business units, which see their own projects as the most important priority, are at odds with IT.
Chris Storey of Cass Business School said, "While IT departments and business units are supposedly working together toward a common goal, we found the two are failing to work together effectively."
He said this means resources are being wasted.
The research said systems need to be implemented by top-level management to oversee project portfolios and the allocation of resources.
"Given their visibility of the entire project portfolio, IT departments should be collating project information to provide senior management with portfolio wide visibility and not being relied upon to make decisions according to the value of projects or their priority," said the report.