Key Takeaways
- The Standish Group's CHAOS Report 1994 found that only 16% of software projects were successful, 53% challenged, and 31% failed outright.
- A 2015 version of the Standish Group CHAOS Report indicated 29% project success rate, with 52% challenged and 19% failed.
- Standish Group 2020 CHAOS Report shows 35% success, 45% challenged, and 20% failure for software projects.
- Average cost overrun for failed software projects is 189% according to Standish Group 1994 CHAOS Report.
- McKinsey 2020: Large IT projects overrun costs by 45% on average.
- PMI 2021: 43% of projects exceed budget by more than 10%.
- Chaos 2011: Time overrun average 222%.
- McKinsey 2018: IT projects delayed by 59% on average.
- PMI 2020: 52% of projects miss deadlines.
- Chaos 2002: User involvement lacking in 42% of failed projects.
- Standish 2015: Executive sponsorship missing in 30% failures.
- McKinsey 2019: Poor requirements in 68% of failures.
- Failed projects waste $50-150 billion annually in US per Standish 2009.
- McKinsey estimates $1.8 trillion lost yearly to project failures globally.
- PMI 2022: $2.5 trillion in losses from poor performance.
Software project failure remains alarmingly high, wasting billions despite some improvement over decades.
Business Impacts
Business Impacts Interpretation
Causes of Failure
Causes of Failure Interpretation
Cost Overruns
Cost Overruns Interpretation
Failure Rates
Failure Rates Interpretation
Schedule Delays
Schedule Delays Interpretation
How We Rate Confidence
Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.
Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.
AI consensus: 1 of 4 models agree
Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.
AI consensus: 2–3 of 4 models broadly agree
All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.
AI consensus: 4 of 4 models fully agree
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
Marcus Afolabi. (2026, February 13). Software Project Failure Statistics. Gitnux. https://gitnux.org/software-project-failure-statistics
Marcus Afolabi. "Software Project Failure Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/software-project-failure-statistics.
Marcus Afolabi. 2026. "Software Project Failure Statistics." Gitnux. https://gitnux.org/software-project-failure-statistics.
Sources & References
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