Friday, December 19, 2008

Study: 68 percent of IT projects fail

ZDNet's Michael Krigsman's analyzes a new report, which finds a 68% technology project failure rate. It's no surprise that Krigsman identifies inadequate business analysis skills and the lack of appropriate requirements definition as two of the key factors leading to an overwhelmingly high rate of IT project failures.

Here's a list of the findings:
  1. Companies with poor business analysis capability will have three times as many project failures as successes.
  2. 68% of companies are more likely to have a marginal project or outright failure than a success due to the way they approach business analysis. In fact, 50% of this group’s projects were “runaways” which had any 2 of: taking over 180% of target time to deliver; consuming in excess of 160% of estimated budget; or delivering under 70% of the target required functionality.
  3. Companies pay a premium of as much as 60% on time and budget when they use poor requirements practices on their projects.
  4. Over 41% of the IT development budget for software, staff and external professional services will be consumed by poor requirements at the average company using average analysts versus the optimal organization.
  5. The vast majority of projects surveyed did not utilize sufficient business analysis skill to consistently bring projects in on time and budget. The level of competency required is higher than that employed within projects for 70% of the companies surveyed.

Visit TechRepublic to read the entire post.

ITIL & IT Service Management

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