A managerial perspective on factors leading to failure in information technology projects

English: This research is based on data collected between April and May 2004 from 150 sample companies registered at the Johannesburg Stock Exchange. The study was organised into six chapters. The first chapter presents the research design, a framework that guides the research from beginning to end. Chapter two presents the theoretical background of project management. Then follows the secondary data findings about IT projects and the factors that lead to failure in IT projects. Chapter four presents the research design and methodology follow this. In the fourth chapter design issues such as data collection techniques, sample design and research instruments implemented are described. Following this primary data analysis is presented. Finally the study ends with the presentation of findings, a conclusion and recommendations. The research results show that - the overall IT project performance has improved to higher degree than was previously reported - a high number of projects still exceed the budget, fall behind schedule and fail to provide the expected benefit - on average, 25 % of IT project work requires reworking - human resource related (people related) problems are the first predictors of the overall IT project failure, followed by project management related problems - the project managers lack the soft and managerial skills necessary for managing IT projects - despite their positive view of project management tools and techniques, the project managers hardly use the project management tools and techniques in practice. - There was no statistically significant performance difference between in-house and out sourced projects. - Poor planning and poor business case were the foremost predictors of failure according to the ranking of the project managers. And the most important recommendations are: - The alignment of IT project goals with overall business strategy and goals, - having a good start backed by the clear definition of requirements and clear project definition, - ensure a general consensus is reached on project success criteria, - manage risk continuously, - end-users should be involved for greater success, - a sound project management methodology should be applied at all times, - project managers should be developed and empowered to implement the project management methodology.