The document discusses challenges with IT project success and software procurement. It finds that 52% of projects are challenged and 19% are canceled, with only 29% successful. Project size, complexity, methodology, cost estimation, and team culture impact success. For large projects, cost is rarely estimated correctly and vendors often inflate costs or cut corners when overruns occur. While Agile works better for software, it is not seen as very compatible with typical procurement processes. The challenge is bringing good software development processes together with good procurement practices.

1. Why collaborate on
Software Procurement?
A.K.A. What’s the problem?

2. IT Project success and failure
52%
19% 29%
Challenged: Major
cost/time/functionality
issues
Canceled before
completion
Success
Source: The Chaos Report 2015

3. Success vs Failure: 5 Characteristics
Size Complexity Methodology
(eg Agile vs Waterfall)
Cost
Estimation
Team
culture

4. Results by project size
62%
21%
9% 6% 2%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Small Moderate Medium Large Grand
Failure
Success
Source: The Chaos Report 2015

5. How often is price estimation right?
0%
10%
20%
30%
40%
50%
60%
70%
Never Sometimes Usually Always
Small
Large
Source: IITP Software and Procurement Survey (2014)

6. 0%
10%
20%
30%
40%
50%
60%
70%
Never Sometimes Usually Always
Large
Source: IITP Software and Procurement Survey (2014)
How often is price estimation right?

7. Vendor reaction to price overrun
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Do Nothing Renegotiate Cut corners Inflate costs Withdraw
Small
Large
Source: IITP Software and Procurement Survey (2014)

8. Fact:
We generally can’t predict the cost
of [complex] software up front.
Yet we still use cost as a criteria?

9. Source: The Chaos Manfesto 2012

10. Agile and NZ Procurement Compatibility
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not compatible Reasonably Very
Source: Those with Agile experience from IITP Software and Procurement Survey (2014)

11. Fact:
Agile works better for software.
Agile succeeds 3x as often, but isn’t
[perceived to be] very compatible with
how we procure software.

12. So what’s the challenge?
Bringing good software processes
and good procurement together.

13. Thanks!