Stakeholder decision delays hinder 47% of major projects in South Asia, PMI report finds

Stakeholder decision-making delays are emerging as a major challenge for organisations  across South Asia as they pursue large-scale digital transformation, artificial intelligence, infrastructure, renewable energy and manufacturing projects, according to a new report by the Project Management Institute (PMI).

The findings, released in the 16th edition of PMI's ‘Pulse of the Profession’ report, suggest that governance bottlenecks and slow decision-making are undermining project outcomes across the region despite strong execution capabilities.

According to the report, delays in stakeholder decision-making affect 47 per cent of complex projects in South Asia, significantly higher than the global average of 34 per cent. Budget overruns and operational inefficiencies are also more prevalent in the region, affecting 33 per cent and 28 per cent of projects respectively, compared with global averages of 28 per cent and 23 per cent.

The report comes at a time when countries across South Asia are investing heavily in digital infrastructure, AI-led initiatives, clean energy projects and manufacturing expansion. While these projects are driving economic growth and innovation, they are also becoming increasingly difficult to manage because of the growing number of stakeholders, shifting priorities and pressure to deliver results quickly.

"Across South Asia, organisations are operating in environments where projects are becoming more interconnected, technology-led, and stakeholder-intensive than ever before. Complexity today is no longer limited to execution challenges alone; it is increasingly influencing decision-making speed, alignment, adaptability, and overall business outcomes," said Amit Goyal, managing director, South Asia, PMI.

The report highlights that complexity has become a defining feature of modern project management. Nearly 97 per cent of project professionals surveyed said they had managed at least one complex project during the past year, while 81 per cent reported that project complexity is increasing. More than one-third described the increase as significant.

Artificial intelligence and rapidly evolving technologies are among the key drivers of this trend. The report notes that organisations are increasingly struggling to keep pace with changing technology cycles while balancing competing stakeholder demands and evolving regulatory environments.

PMI's research also points to a disconnect between senior leadership and project teams in how they perceive complexity. While business leaders tend to focus on external challenges such as technological disruption, AI adoption and regulatory uncertainty, project professionals often experience complexity through shifting project scope, conflicting priorities and coordination breakdowns.

This mismatch, the report suggests, can create a strategy-execution gap that hampers project outcomes.

The consequences are significant. Four out of five complex projects experience some form of negative fallout linked to unmanaged complexity. About 61 per cent of project professionals reported value loss resulting from complexity-related issues. Missed deadlines, cost overruns and operational inefficiencies often serve as warning signs that projects are struggling to perform as intended.

Beyond financial and operational impacts, the report also highlights the human cost of complexity. South Asian organisations reported higher-than-global levels of declining team morale and employee engagement, suggesting that poorly managed projects can place sustained pressure on project teams.

However, the report identifies several practices that can improve outcomes. Sponsor alignment at the start of a project emerged as the most effective intervention. Yet only 30 per cent of South Asian respondents reported using this approach, compared with 35 per cent globally.

PMI also found that phased stakeholder engagement and continuous reassessment of project conditions can help organisations navigate complexity more effectively. South Asian professionals appear to be performing relatively well in this area, with 53 per cent reporting the use of phased stakeholder engagement compared with 48 per cent globally.

"The organisations that will succeed are those that can build execution capability not just through processes, but through stronger collaboration, systems thinking, and people-centric leadership," Goyal said.

The report concludes that as projects become increasingly interconnected and technology-driven, organisations will need to move beyond traditional project management approaches and focus on collaboration, adaptability and stakeholder alignment if they are to deliver successful outcomes in an increasingly complex environment.