By Carr Philips
In the world of project management, the overall success of the project is determined by three factors—on-time delivery, customer satisfaction and on-budget delivery. If a project goes significantly over-budget (as they often do), it will not be considered a success, even if it's delivered on time and meets end users' needs. A Government Accountability Office study found that half of the federal highway projects it examined had cost overruns of more than 25 percent.
Gartner analyzed2 tech projects implemented by healthcare delivery organizations and predicted that more than 60 percent would be at least 30 percent late or 20 percent over budget. Oxford University research3 of 1471 projects shows that Information and Communication Technology projects deviate from their initial cost estimate by more than 10% in 8 out of 10 cases. The average overrun was 27% and one in six of the projects had a cost overrun of 200 percent.
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