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9/16/2010
03:15 PM
Jake Widman
Jake Widman
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15 Budget Busting Technology Projects

Large-scale information technology projects can balloon to inconceivable figures very quickly with endless revisions, change orders and delays pushing budgets into the stratosphere. Sometimes the cost of an IT project can be measured simply in dollars, but just as often these projects costly in other ways -- in reputation, for example. With government projects, it's easy to look at the budget and see how much it costs -- or at least how much it's supposed to cost. In the private sector, it's not
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The Canadian government started in 1997 with plans for a modest project that would cost $119 million but would be offset by $117 million in licensing fees. But political controversy led to giving the contractors, EDS and SHL Systemhouse, more than 1,000 change orders in just two years. They pushed the cost to $688 million, and by 2001 maintenance alone was running $75 million a year. In 2002, an audit estimated that the program would cost more than $1 billion by 2004.

SEE ALSO:

IT Hall Of Shame

7 Biggest Microsoft Flops Ever

IT Hall Of Shame, Part 2

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