It’s a bitter truth that many IT contracts are unfortunately terminated before completion, and many involve cost overruns.

No single reason can be given for such IT project failures.

There are multiple contributing factors:

a) Poor communication

b) Changing client needs

c) A lack of customer involvement

d) Ineffective project management

e) The IT vendor’s lack of expertise

f) An undisciplined project baseline

g) Insufficiently managed requirements

While the frequency of IT projects going wrong is very high, only a few disputes go to court.

This is because of two reasons:

1) Litigation is costly.

The cost of litigation not only determines the price of access to justice.

But it also impacts both the conduct and outcome of litigation.

2) The complexity of IT projects hinders a favorable judgment.

It’s particularly difficult to convince the judge unless there is a clear contract in place.

However, regardless of whether the matter goes to court or not, a dispute surely leaves bitterness for both parties.

And in many cases, both parties suffer.

IT projects often share a common story of ending up in failure.

My advice is twofold:

1) Set Expectations Clearly

Project scopes are usually defined very broadly, and this is the center point for disputes.

Hence, the initial project should be defined with specificity.

And if any changes in the scope are made down the line, they should be properly documented.

2) Don’t Rush in Understanding Requirements

Clients' stated needs are often misunderstood, or the capacity to fulfill a client’s requirements is not appreciated.

Vendors are in a rush to close the client.

And without carefully analyzing the needs, they start the project.

This only later leads them to face cost overruns or delays.

And remember, while vendors may try to limit their exposure and liability through contracts, there is a limit.

And a too-wide liability cap can be held void.

That's it!

Now you understand 2 ways you can prevent a Project Failure.

And typically, being clear with what you provide helps a lot.

Always focus on the "What if" scenarios.

What if things go south? What if payment doesn't get cleared?

Focus on that and deliver!

But if you want my team and I to draft those Contracts for you, to protect your business, pick a time here:

https://calendly.com/mtlegalteam/discovery-call-with-mtlegal-team

Or, you can just DM me the word "SOFTWARE" on LinkedIn or Twitter (X).

We can talk about how we can work together. 

Talk to you soon.

-- Akhil Mishra