Recession Causes Rising IT Project Failure Rates

By Meridith Levinson, June 23, 2009
http://www.cio.com/article/495306/Recession_Causes_Rising_IT_Project_Failure_Rates_

According to the resource provided by the article, The Boston, Mass.-based IT project management research and consulting firm surveyed 400 organizations and found a decrease in IT project success rates and an increase in IT project failure rates during the past two years. Specifically, 32 percent of IT projects were considered successful, having been completed on time, on budget and with the required features and functions. Nearly one-in-four (24 percent) IT projects were considered failures, having been cancelled before they were completed, or having been delivered but never used. The rest (44 percent) were considered challenged: They were finished late, over budget, or with fewer than the required features and functions.
The article points out that the high IT project failure rate attribute to inadequate funding and layoff caused by recession.
The article reminds me that the timing selection of IT project is vital for IT project's success. Before IT get started, not only internal dominant elements , but also external dominant external element, especially macro-economic, should be evaluated. An IT project often takes a couple years, CEO and CIO should have a long term view of macro-economic to plan an IT project.