Why do 70% of IT projects fail? Outsourcing can minimise the risk of failure!
Statistics show that 70% of IT, technology, and digital projects fail. This figure is quite thought-provoking: what does failure mean, why do projects fail, and most importantly – what can be done to avoid it?
What does project failure mean?
Based on various studies, project failure can be divided into two categories:
1. Complete failure (approximately 30%) – the project is either cancelled entirely, or the result is unusable. According to a McKinsey study, 17% of large IT projects fail so badly that they put the company's very operations at risk.
2. Partial failure (approximately 40%) – the project delivers a result, but it either exceeds the budget, is delayed, or fails to fully provide the expected benefits.
In other words, failure isn't just about a “project that doesn't work”, but also about unmet expectations.
Reasons for project failure
While the reasons vary, they fall into 3 main groups:
1. Poor project management
- Unrealistic scheduling
- Incorrect budgeting
- Poor resource allocation and “scope creep”
2. Poor requirements management
- Failure to properly gather user needs
- Misaligned expectations
- Poor stakeholder engagement
3. Poor communication
- User distrust in the project
- Lack of change management
This is where an outsourcing service can be a viable solution for companies. But how?
Global Management's IT specialists manage the project's resources, budget, and timeline using professional methodologies.
- Our experienced team prevents “it works, but doesn't meet expectations” outcomes by gathering precise requirements and correctly identifying business needs.
- We keep clients informed at every stage of the project through regular and transparent communication. This both strengthens trust and minimises the risk of failure.
Technology projects can be high-risk, but failure is not inevitable. With proper management, effective communication, and a professional approach, it is possible to significantly reduce this figure.
With Global Management's outsourced IT services, you can carry out your projects more securely, faster, and more cost-effectively. Contact us today to increase the chances of success for your IT project!
