GITNUX MARKETDATA REPORT 2024

Project Failure Statistics: Market Report & Data

In this post, we explore eye-opening statistics surrounding project failure rates and the alarming trends that highlight the challenges faced by organizations in successfully executing projects. From high percentages of cost overruns to the impact of inadequate requirements gathering, these statistics shed light on the common pitfalls that can lead to project failures. Follow along to gain valuable insights into the factors contributing to project setbacks and how organizations can mitigate these risks for improved project success rates.

Statistic 1

"Around 31% of projects will be canceled before they ever get completed, according to a report."

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Statistic 2

"About 52.7% of projects experience a cost overrun, according to the 2015 CHAOS report."

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Statistic 3

"Nearly 55% of all project failures could be avoided with proper requirements gathering, according to Geneca's report."

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Statistic 4

"25% of technology projects fail outright; 20%-25% don’t provide ROI and 50% need massive reworking by the time they’re finished, as per McKinsey-Oxford report."

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Statistic 5

"About 34% of projects have no baseline, according to a report by The Standish Group."

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Statistic 6

"Only 2.5% of companies successfully complete 100% of their projects, according to Gallup Business Journal."

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Statistic 7

"Nearly 17% of IT projects can go so bad that they can threaten the very existence of the company, according to McKinsey & Company in conjunction with the University of Oxford."

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Statistic 8

"On average, large IT projects run 45% over budget and 7% over time while delivering 56% less value than predicted, according to McKinsey & Company."

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Statistic 9

"Lack of user input is the cause for 12% of project failures, according to a report by The Standish Group."

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Statistic 10

"78% of respondents felt that the "Business is usually or always out of sync with project requirements", as reported by Geneca."

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Statistic 11

"85% of business executives believe that their companies have trouble executing projects that are critical to their strategies, according to PricewaterhouseCoopers."

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Statistic 12

"Over 80% of all projects are late, over budget, short of expectations, or simply undelivered as a result of poor requirements, according to IAG consulting report."

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Statistic 13

"About 22% of projects fail due to inadequate resource forecasting according to KPMG project management survey report."

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Statistic 14

"Per a ZDNet report, for complex IT projects, 39% of projects have success, 43% are challenged and 18% fail."

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Statistic 15

"66% of projects fail due to poor performance and stakeholders changing their minds about what they want, according to CIO magazine."

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Statistic 16

"In a Harvard Business Review report, it is stated that one in six IT projects have a cost overrun of 200% and a schedule overrun of 70%."

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The statistics presented demonstrate a concerning trend of project failures across various industries, with a significant portion being canceled, experiencing cost overruns, lacking proper requirements gathering, and failing to provide expected return on investment. These failures are often attributed to factors such as inadequate resources, lack of user input, poor performance, and stakeholder changes. Companies face substantial risks, with a notable 17% of IT projects posing a threat to their very existence. The data emphasize the critical need for effective project management strategies, thorough requirements gathering, and alignment between business goals and project execution to mitigate these high failure rates and ensure successful project outcomes.

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