How much money is spent annually on information technology projects in
the United States?

In 2002, $255 billion was spent on U.S.  Information Technology
projects.  IT Project spending for 2003 was estimated at $275 billion.

Excerpt:

?In 2002,

- Only 34% of software projects were completed on time and within budget
- 15% of software projects were abandoned
- $55 billion was wasted ($38 billion lost + $17 billion cost
overruns) out of $255 billion spent on US IT projects?

(...)

?Project spending for 2003 was projected as $275 billion on 250,000 projects.?
Source: Standish Group studies, and 2/1/03 Inc. Magazine 


How to Reduce Risk in Information Technology Projects
Harwell Thrasher
April 28, 2004
http://www.pmiatlanta.org/archive/Apr_04_Meeting.pdf

Search terms used:

Billion "information technology projects"
"Information technology projects" spending billion 
"Information technology" " project spending" billion
?IT project? spending billion U.S.

I hope you find this information useful!

Best regards,
Bobbie7

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Request for Answer Clarification by tpm-ga on 14 Sep 2004 13:49 PDT

Are the Standish Group Studies publicly available? Which one did the
exerpts come from?

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Clarification of Answer by bobbie7-ga on 14 Sep 2004 14:03 PDT

Are the Standish Group Studies publicly available? Which one did the
excerpts come from? 

I am not certain in which Standish Group reports the information is provided.
Here is a listing of their reports. These reports are not freely
available; however they are available for purchase here:
https://secure.standishgroup.com/reports/reports.php

Here are some Standish Group sample research reports that are free.
http://www.standishgroup.com/sample_research/index.php

Additional information that may interest you:

Here is a press release from the Standish Group:
?In 1994, The Standish Group estimated US IT projects had a waste of
$140 billion ($80 billion in failed projects) against $250 billion in
project spending.?
http://www.standishgroup.com/press/article.php?id=2


?Information technology projects are crucial to business, as
organizations push new software, network, Internet, and wireless
communications applications into their enterprise aimed at increasing
profits and productivity. U.S. organizations spend more than $2.3
trillion each year on projects of all sorts, according to a Project
Management Institute (PMI) study. The Standish Group reports that U.S.
organizations spend $275 billion annually on application software
projects?

?These information technology projects are loaded with risks that
often lead to failure. According to a Standish Group survey, only 16
percent of technology projects are completed on time and on budget and
31 percent are cancelled altogether. Moreover, cost overruns average
189 percent of original estimates.?

The Institute of Internal Auditors 
http://www.theiia.org/itaudit/index.cfm?fuseaction=forum&fid=447
http://www.nvgc.vt.edu/bhoopes/5495/chap01.ppt

?The PMI Fact Book is even more pessimistic: it says the United States
spends $2.3 trillion a year on  projects and that much of that money
is wasted because a majority of projects fail. Also:  - Standish Group
International found that only 28% of information technology projects
are  completed successfully.?
Rothstein Associates Inc. 
http://www.rothstein.com/slbooks/dr735.htm