The cost of doing IT badly

If I’m reading the chart right, in the US the cost of IT failure runs about 8 percent of GDP.  Ouch.  The reason the costs estimates are higher in this analysis are because the author includes opportunity costs – not just the cost of throwing the money into the black hole that is your local IT department – but also the money you fail to earn by not spending it more wisely.  

Worldwide cost of IT failure: $6.2 trillion | IT Project Failures | ZDNet.com

The calculations include estimates for lost opportunity costs incurred when projects fail, which is one reason these numbers are so high. These indirect costs have significant impact on the calculations reported in the white paper.

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Published in: on December 28, 2009 at 7:52 pm  Leave a Comment  

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