Why so many IT projects go so horribly wrong - and how to do them better

IT projects are notorious for their ability to wreak havoc on timelines, budgets, and expectations. Despite the best intentions, many projects overrun, overspend, and underdeliver. But why does this keep happening? And is failure unavoidable?

The truth is, IT projects are particularly prone to pitfalls compared to other types of initiatives. A recent study reported in The Economist offers sobering statistics that illustrate the scale of the problem. Yet at POPX, with our 25 years of specialist Managed Service Provider (MSP) experience, we know these challenges can be overcome.

Our approach, grounded in deep industry knowledge and a meticulous focus on ideation, has consistently helped MSPs avoid these traps and save considerable costs.

To understand how we can address these issues, let’s first explore why IT projects go so horribly wrong.

The staggering stats behind IT project failures

Research conducted by Bent Flyvbjerg and his colleagues reveals that IT projects suffer from unique challenges that set them apart from other major undertakings. The findings are stark:

• 40% of IT projects exceed budgets. While this is lower than high-profile infrastructure projects like nuclear power plants (97%) and hydroelectric dams (75%), it’s still indicative of a major problem.
• When over-budget, IT projects go catastrophically over. For those projects that do exceed their budgets, the average cost overrun exceeds 450%. This makes IT projects worse than even nuclear waste storage facilities when it comes to severe cost inflation.
• IT projects often short-change planning. The mean duration of large IT projects is only 3.2 years, compared to 6.9 years for infrastructure projects. This condensed timeframe often reflects rushed planning, leading to trouble down the line.

Why do these issues occur so consistently? The report identifies a few culprits, including a lack of industry expertise among project managers, a tendency to prioritise schedules over substance, and a reluctance to adapt when businesses uncover new needs mid-project.

At POPX, we see these issues all too often when MSP clients come to us to help recover or prevent project failures. But we also know that it doesn’t have to be this way.

Why so many IT projects fail

Many IT projects are spearheaded by project managers who see their role as strictly limited to staying on schedule and hitting predefined goals. While timelines and targets are important, this narrow focus means the broader needs of the business often go overlooked.

Inevitably, as the project progresses, businesses uncover previously hidden priorities. These “15 other things” that now seem crucial to success often get ignored in favour of hitting the original deadline. This rigid approach leads to missed opportunities and costly failures.

At POPX, we’ve lived and breathed the MSP world. Our leadership team has decades of experience, not just observing the industry but working within MSPs themselves. We know the risks. And we know that avoiding failure begins at the very start of a project—with an ideation process that gets to the heart of what truly matters.

POPX’s unique approach to IT project success

With over 25 years of hands-on MSP experience, POPX takes a radically different approach to IT projects. For us, the ideation phase isn’t a box-ticking exercise. It’s the foundation of everything that follows. Here’s how we do it:

Thorough ideation leads to clarity

Every project we undertake begins with asking fundamental questions like, “What are we trying to achieve?” and, “Why is this the right solution?” These early conversations help our clients distil what’s essential and uncover hidden opportunities that often go unnoticed in a rush to begin execution.

For instance, when a client asks for a specific piece of software to solve a problem, we take time to explore why they think that is the solution. Often, we’ll uncover that the real issue lies elsewhere, and there’s a simpler, more scalable way to achieve their goals. This saves money, reduces risks, and ensures outcomes align with business needs.

Planning done right

Many IT projects fail due to constraints at the planning stage. Flyvbjerg’s study found that IT projects don’t dedicate enough time to preparation. However, cutting corners here only inflates costs and causes delays later on.

At POPX, we emphasise comprehensive planning. Our ServiceNow-powered platform enables us to map out clear objectives, identify potential obstacles, and create robust, adaptable timelines. This ensures our clients aren’t blindsided mid-project by unexpected issues.

Standardisation over customisation

Another significant risk to IT projects is the allure of customisation. Bespoke builds often appear to be tailored solutions, but they usually come with hidden costs, complexities, and scalability issues. Flyvbjerg’s findings confirm that over-customising solutions plays a substantial role in IT project failures by introducing unnecessary risks.

Being MSP specialists, we know what works and what doesn’t. That’s why POPX advocates for standardised, scalable frameworks that meet needs faster, at a lower cost, and with better long-term results. By leveraging ServiceNow’s robust architecture, we help MSPs avoid the costly rabbit holes of over-customisation.

Tangible cost savings

One of the clearest indicators of our success is the cost savings our clients achieve. Thanks to a careful ideation process and scalable solutions, POPX consistently delivers IT projects that save MSPs hundreds of thousands of pounds. The meticulous planning we bring to each project eliminates excess, focuses on what matters, and ensures every action delivers measurable value.

Actionable advice for IT project success

If you’re an MSP looking to improve your IT project outcomes, here are a few recommendations based on both Flyvbjerg’s research and our experience at POPX:

• Invest in ideation. Take time to ask the right questions, explore your objectives, and uncover hidden priorities. This process lays a solid foundation for success.
• Plan thoroughly and realistically. Rushed preparation only leads to chaos later. Commit to a planning phase that maps out challenges and builds in room for adaptation.
• Resist over-customisation. Stick to standardised solutions that offer scalability and simplicity. Bespoke builds often create more problems than they solve.
• Partner with industry experts. Seek out partners like POPX who deeply understand your industry and can provide tailored, proven solutions.

Turning failures into opportunities

Flyvbjerg’s research underscores just how risky IT projects can be. But at POPX, we believe these risks are entirely avoidable with the right approach. By prioritising ideation, focusing on outcomes, and leveraging our extensive MSP expertise, we help clients achieve IT project success without the headaches so commonly linked to the industry.

Are you ready to transform your IT initiatives? Get in touch with POPX today and discover how we can turn your challenges into opportunities for growth and lasting success.