The data points below are related to Software Development State of Art in America. You can imagine what may be happening in other part of the world.
- United States spend more than $250 billion each year on IT application development of approximately 175,000 projects
- 31.1% of projects will be cancelled before they ever get completed.
- 52.7% of projects will cost 189% of their original estimates.
- The lost opportunity costs are not measurable, but could easily be in the trillions of dollars.
- The failure to produce reliable software to handle baggage at the new Denver airport is costing the city $1.1 million per day.
- On an average only 16.2% for software projects that are completed ontime and on-budget
- In the larger companies, the news is even worse: only 9% of their projects come in on-time and on-budget
- Projects completed by the largest American companies have only approximately 42% of the originally-proposed features and functions.
- Projects completed by the smaller American companies A total of 78.4% of their software projects will get deployed with at least 74.2% of their original features and functions.
- 48% of the IT executives in research sample feel that there are more failures currently than just five years ago
- Time overrun: The average overrun is 222% of the original time estimate. For large companies, the average is 230%; for medium companies, the average is 202%; and for small companies, the average is 239%.
- Cost overrun: The average across all companies is 189% of the original cost estimate. The average cost overrun is 178% for large companies, 182% for medium companies, and 214% for small companies.
- Features and functions: On average, only 61% of originally specified features and functions were available on these projects. Large companies have the worst record with only 42% of the features and functions in the end product. For medium companies, the percentage is 65%. And for small companies, the percentage is 74%.
4 Projects were taken for case study and out of these HYATT project had highest points for success criteria and was complete on time, in budget with more features.
|4 Projects of Case Study|
|1. User Involvement||19||NO(0)||NO(0)||YES(19)||YES(19)|
|2. Executive Management Support||16||NO(0)||YES(16)||YES(16)||YES(16)|
|3. Clear Statement of Requirements||15||NO(0)||NO(0)||YES(15)||NO(0)|
|4. Proper Planning||11||NO(0)||NO(0)||YES(11)||YES(11)|
|5. Realistic Expectations||10||YES(10)||YES(10)||YES(10)||YES(10)|
|6. Smaller Project Milestones||9||NO(0)||NO(0)||YES(9)||YES(9)|
|7. Competent Staff||8||NO(0)||NO(0)||YES(8)||YES(8)|
|9. Clear Vision & Objectives||3||NO(0)||NO(0)||YES(3)||YES(3)|
|10. Hard-Working, Focused Staff||3||NO(0)||YES(3)||YES(3)||YES(3)|
Compete Chaos Report can be read at here