The Standish Group's 2004 Chaos Research report provided the following statistics on IT project failures:
"71 percent of IT projects are either outright failures or are only partially successful: 18 percent are either cancelled outright or deliver no value to the business, while 53 percent of IT projects are late, over budget or only deliver a portion of the expected features and functionality. As a result, organizations are spending about $55 billion annually on cancelled projects and cost overruns."
This oft-quoted statistic sounds extraordinarily high to me. And in fact a Journyx survey reports a much more reasonable number.
This is a pretty disheartening statistic for companies who invest a great deal of money, time and staff energy into projects that the market is not rewarding them for. This problem is one that automated employee time collection software works to eradicate through effective project tracking. In 2003, a Journyx Timesheet customer survey found that only 12% of their customers' projects were unprofitable. Not only that, but the data provided by that solution allowed roughly half of them to recognize this and fix it in time.
71% failure rate versus 6% failure rate. Could it be that automated timesheet software customers are doing something right?