If you’ve ever been involved with any part of a technology project, you likely know what we’re talking about here. But here are six facts, uncovered by McKinsey and the University of Oxford, that back up that sick feeling that might arise in the pit of your stomach at the sound of “large-scale technology project.” (Of course, here at Echidna, we know that most eCommerce projects don’t cost millions, but the lessons learned in this study could in fact be worth as much in the long run.)
1. If a project is scheduled to last longer, it’s more likely to exceed the set time and budget.
2. Each extra year spent working on a technology project increases the cost overrun by 15%.
3. Of all large technology projects (>$15M), at least half greatly exceed their budgets.
4. Large technology projects average 45% over budget and 7% over time, yet they deliver 56% less value than planned.
5. Software projects are most at risk of cost and time overrun.
6. Up to 17% of technology projects turn out so badly that they threaten the existence of the company.