Failed software projects costing Australian enterprises millions

Stan Beer
Thursday, 13 November 2008 11:02

Business IT - Security

Carter says the elements from the 2007 survey that organisations attributed to successful projects are similar in 2008, with 66% of organisations rating quality of staff as good or very good for their most important project and 58% believing management buy-in was good or very good.

“On the other hand, project estimation was the least positive of project conditions, with just 23% of respondents rating timing estimates favourably and 25% feeling optimistic about budget estimates,” says Carter.

As the global meltdown hits Australia and New Zealand, software project conditions are already worsening. What happens in 2009 is anyone’s guess but, based on the Index, it would appear project conditions are likely to deteriorate. In 2008, 16% reported very poor conditions (up from 6% in 2007), while 37% rated the conditions as better than ok (down from 44% in 2007).

Almost half (49%) of organisations plan to increase their use of structured testing processes over the next 12 months, while 26% will increase their employment of certified testing professionals. On the offshoring side, 16% plan to increase their outsourcing of testing to
overseas companies.

Carter believes the continuing financial crisis is going to increase pressure on organisations to keep software development project budgets in check.

“Already, we’ve seen project conditions worsen since 2007 and unless companies make project management and quality assurance a priority, this is likely to continue,” he warns. “Organisations who have invested, and continue to invest, in their testing capability will have the edge over their competition in 2009.”

The Planit Testing Index showed that:

-     Organisations started testing earlier in 2008, with almost one quarter (24%) of respondents testing during the requirements (first) phase in their most important project.

-     More New Zealand organisations (65%) view software testing as a critical element in producing reliable software than their Australian counterparts (55%).

-     Project drivers differ between sectors, with 30% of finance/insurance companies listing increasing profitability as their major motivation, while 21% of government organisations view meeting compliance requirements as their primary driver. Telecommunications companies are focused on cost reduction, with 17% highlighting this as their biggest driver in completing software development projects.

-     The average project cost $844,863 per month, slightly down on the 2007
figure of $853,000.