Why Do IT Projects Keep Going Over Budget and Missing Deadlines?

IT projects are supposed to drive efficiency, cut costs, and modernise how organisations work. Yet, time and again, we see the opposite: projects that run late, overspend massively, and fail to deliver the outcomes promised.

This isn’t just a problem in Ireland. It’s a global issue that affects both public and private sectors. The difference is that public projects are scrutinised in the open — while in the private sector, many failures remain behind closed doors.

In a recent Irish Times piece, Paul Davis, Associate Professor at DCU Business School, offers a sobering analysis of why IT projects so often disappoint. Drawing on cases ranging from Ireland’s new National Train Control Centre to IT systems in hospitals and cultural bodies, Davis explains:

Complexity is consistently underestimated — systems that start off relatively simple expand as new features are added, causing scope creep and extra costs.

Procurement decisions can be short-sighted — going with the cheapest bid may look good upfront, but the long-term risks are enormous.

Failure isn’t the exception — it’s endemic — studies suggest a huge proportion of IT projects across sectors fail to deliver expected results.

Transparency is uneven — public projects are questioned in parliamentary committees and reported in the media, while private sector missteps rarely surface.

The Irish cases outlined in the article — from delayed transport systems to cost overruns in healthcare IT — highlight the same pitfalls seen worldwide.