Index shows over 50% of software projects struggle

Just 46% of software projects in ANZ delivered on time and on budget

Failed software projects are dogging Australian and New Zealand organisations, with more than half still failing, according to a new survey.

The Planit Testing Index, to be released in November, has found that botched, re-scoped and cancelled projects waste around A$197,000 per week.

The index, commissioned by Australian software testing organisation Planit, surveyed 210 companies in Australia and New Zealand, mostly in the finance/insurance, telecommunications and government sectors, on their software testing practices.

Chris Carter, Planit’s managing director and president of the Australian/New Zealand Testing Board (ANZTB), says although organisations are still completing just 46% of their software projects on time and on budget, this is a slight improvement 42% in the 2007 index.

“There’s no denying the project success rate in the Australian/New Zealand region still has a long way to go, however the Index revealed organisations are starting to seriously look at how they can increase their chances of a successful software project,” he says. “For instance, 57% of companies now rate testing as a critical element in producing reliable software, compared to 50% in 2007.

The survey found finance and insurance companies lead in testing investment (24% of project budget) while organisations in the government sector spend just 14% of their total project budget on testing.

The survey found that more New Zealand organisations (65%) view software testing as a critical element in producing reliable software than their Australian counterparts (55%).

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