cost over runs of projects

 

AUGUST 23, 2011

15% of IT Change Projects Are Huge Money Sinks

1 in 6 IT change initiatives such as ERP and CRM systems turn out to be money pits, with cost overruns averaging 200% and schedule overruns of almost 70%, according to Bent Flyvbjerg of Oxford and Alexander Budzier of McKinsey, who studied 1,471 such initiatives worldwide and report their findings in the September 2011 issue of Harvard Business Review. Smart companies have learned to break big projects down into initiatives of limited size, complexity, and duration, and the companies make contingency plans to deal with unavoidable risks, the authors say.

Source: Why Your IT Project May Be Riskier Than You Think