Project Always Fail, Not really?

The success rate of software projects remained low. The Standish Group reports that only about 28% of IT projects are a success (2001). As per Standish Group’s (2013) update considering data’s from several thousand companies on IT PM discloses that only 16.2% project accomplished on time and on budget. While considering the large firm alone, it is even worse and discloses only 9% successful project on time and on budget. In addition, the report shows that around 31.1 % of projects were cancelled before they ever are completed and 52.7% of projects cost 189% of their original budget estimates.  In addition to this there is bad news that 48% of IT executives from IT organization feels that there are more failure than it was five years ago and the good news is that 50% of them feel that there are less project failures than it was five years ago (Standish Group, 2013). Software development projects are in bedlam, and organizations can no longer imitate the three monkeys — hear no failures, see no failures, speak and failures.

The cost overrun in a project is just the tip of proverbial iceberg. It is difficult to measure the opportunity cost related to IT PM but it could be in trillions of dollars. City of Denver is a good example to refer to understand the extent of such problems (Standish Group, 2013). The failure to produce reliable software for handling baggage Denver airport is costing city 1.1 million/day. Standish Group (2010) report estimated that US based companies would spend $81B for cancelled projects. The same organizations will pay an additional $59B for IT projects which will not complete on time.

It has been estimated that IT failure cost is about $500 billion per month across the world (session, 2009). Standish group (2009) found from all IT project surveyed that 24% failed, 44% challenged and only 32% succeeded.

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