PREDICTING RISK OF FAILURE IN LARGE-SCALE INFORMATION TECHNOLOGY PROJECTS

Major Information Technology (IT) projects incur significant risks. The paper reviews existing research studies and frameworks in order to delineate such risks and then analyzes seven major technology-based projects in terms of risks undergone and differing levels of success. A process-oriented framework, developed from organization studies, is then put forward and used to analyze the case histories further. It is suggested that risk analysis in large-scale IT projects is a critical task, setting the risk parameters in which subsequent management needs to take place. All too often risk is underanalyzed and undermanaged, however. In particular, undue reliance is placed on statistical and finance-based techniques that surrender broad risk analysis for an insufficient, and often spurious accuracy, overfocused on potential economic costs rather than leading on to improved risk management. The paper pulls out the significant risks experienced in major IT projects and puts forward a complementary risk profiling tool that can be used to help predict risks in future projects.