Project Interdependency is a term used to denote a situation when two or more projects are related to each other in certain ways (they depend on each other somehow). Project interdependency can be considered as a great risk for all projects that interrelate within a certain schema, because if one of them fails to deliver expected results appropriately, then all other projects in this schema will be affected too (if this interdependency is critical, then collapse of one project will automatically result into collapse of dependent ones).
Here are some kinds of situations where two or more projects can be interdependent:
- The same resource is shared by several projects – they can compete for it (resource conflicts can occur), or intensive involvement can lead to excessive stress put upon this resources (so the risk of resource outage increases);
- One project cannot be started until the other is finished (or started), or until certain deliverables from that project are ready (one or more tasks in another project should be completed);
- The projects compete for a limited pool of funds (projects share an overall budget), so if a cost overrun occurs on one of the projects, then all others will be put under risk of funding shortfall;