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What is the real cost of software failure?

For every 100 IT projects started, 94% are restarted.
On an average IT project cost overrun is about 178%.
On an average IT project, time overrun is 230%.
On an average for every IT project started in large companies, only about 42% of features originally proposed get into the final product.
On an average, only 9% of projects meet budget and schedule requirements.
31.1% of all projects are cancelled before completion.
52.7% of projects cost 189% of their original estimates.
The cost for IT projects cancelled before implementation in America in 1995 alone was estimated at $81 billion.
The cost of overruns for the same period (in addition to cancelled projects) was estimated at $59 Billion.

Source: Standish Group Survey CHAOS: 1995

Failure & Downtime
Studies in the U.S. have estimated software failure is costing the US $100 billion dollars per annum. The cost of software failure globally was estimated at $1754 billion dollars and 45% of computer downtime, in 2001.

The Hidden Cost of Computer Downtime

Industry Sector Revenue/Hour

Energy - $2.8 million
Telecommunications - $2.0 million
Manufacturing - $1.6 million
Financial Institutions - $1.4 million
Information Technology - $1.3 million
Insurance - $1.2 million
Retail - $1.1 million
Pharmaceuticals - $1.0 million
Banking - $996,000

Source: IT Performance Engineering & Measurement Strategies: Quantifying Performance Loss, Meta Group, October 2000.

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