PREDICTING RISK OF FAILURE IN LARGE-SCALE INFORMATION TECHNOLOGY PROJECTS

Major Information Technology (IT) projects incur significant risks. Th e paper reviews existing research studies and frameworks in order to d elineate such risks and then analyzes seven major technology-based pro jects in terms of risks undergone and differing levels of success. A p rocess-oriented framework, developed from organization studies, is the n put forward and used to analyze the case histories further. It is su ggested that risk analysis in large-scale IT projects is a critical ta sk, setting the risk parameters in which subsequent management needs t o take place. All too often risk is underanalyzed and undermanaged, ho wever. In particular, undue reliance is placed on statistical and fina nce-based techniques that surrender broad risk analysis for an insuffi cient, and often spurious accuracy, overfocused on potential economic costs rather than leading on to improved risk management. The paper pu lls out the significant risks experienced in major IT projects and put s forward a complementary risk profiling tool that can be used to help predict risks in future projects.