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INSIGHTS / Media Coverage

Aussies overspend on dud software

 26 Oct 2007 
INSIGHTS / Media Coverage

Aussies overspend on dud software

 26 Oct 2007 

At a time when CIOs are crying out for more funding, a report has revealed Australia’s large organizations are bleeding software development projects at an average rate of $A86.7 million each year.

According to a survey commissioned by independent Australian software testing organization, Planit, more than half of all Australian projects run over time and over budget.

Planit, surveyed 131 large organizations in Australia, most of them corporations in the finance, insurance, and telecommunications sectors, plus government organizations. Analysis was conducted on both the total number of projects commenced by respondents, as well as their most important projects over the past two years.

“On average, companies start 38 projects annually, less than half of which (42 per cent) are completed on time and on budget, while 6 per cent are canceled altogether,” said Chris Carter, Planit’s managing director, who is also the president of the Australian/New Zealand Testing Board (ANZTB) and secretary of the International Software Testing Qualifications Board (ISTQB), “At an average cost of $A199,033 per week, projects not completed within the set time-frames are causing companies major budget blowouts.”

According to the Planit Testing Index, successful projects depend largely on management. Buy-in quality staff, and well-defined requirements. of those projects completed on time and on budget, 78 percent of respondents reported good or very good levels of management buy-in, 65 percent rated the quality of staff as good or very good, and 50 per cent felt the requirements definition was good or very good.

Carter agreed that quality staff play a major factor in a project’s success, but said that finding that staff is a real issue for companies as the strong economy and low unemployment rates combine to create a skills shortage.

“Organizations must invest large amounts of time and money into recruiting and retaining staff, or risk losing them to competitors,” he said,” while more than two-thirds of project work for the surveyed organizations was carried out by in-house resources, the skills shortage is forcing companies to look at third parties as an alternative to employing staff on a full-time basis.”

The study revealed those companies with advanced testing techniques and methods successfully completed 60 percent of their projects. This starkly contrasts with those organizations which have no planned or documented testing process and undertake testing in an ad hoc way; the latter group reported successful completion of just 29 per cent of their projects.

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