The Real Reasons IT Projects Fail (That Nobody Talks About)

  • Mathews AbrahamMathews Abraham
  • Business
  • Apr 01 2025
Why IT Projects Crash and Burn

Every IT Service company dreams of dazzling their clients with flawless projects. Every client dreams of a shiny new system delivered on time, under budget, and precisely as envisioned. Yet, reality often delivers a swift kick to the shins: deadlines disappear and are never seen again, costs balloon, and what’s delivered looks more like Frankenstein’s monster than a masterpiece. Why does this keep happening? Let’s break down the mess, look at where things go wrong, and figure out how to deliver what we said we would. 
 

What Do Clients Really Want? 

Clients walk in with a holy trinity of expectations: fast delivery, top-notch quality, and straight talk. Simple, right? Not so fast. Beneath that surface lies a wish list that could sink a Titanic, bang-for-buck value, proactive handholding, bulletproof security, zero downtime, and occasionally a magic wand to fix their business overnight.  

These expectations don’t come out of nowhere. They’re shaped by past vendor flops, glossy industry buzzwords, or a sales pitch that promised the moon. When no one bothers to sync up on what’s actually doable, you’re not building a project, you’re building a time bomb.
 

The Real Playbook for Getting Projects Done Right 

Great IT teams don’t just guess, but they use communication as their superpower. Here’s how they do it: 

  • Draw the Line Early: Scope, deadlines, budget: nail it down; no vagueness allowed. 

  • SMART Goals: Specific, Measurable, Achievable, Relevant, Time-bound. It’s a cliche because it works.  

  • Stay in Touch: Weekly demos, quick emails, or a “we’re still alive” ping, clients love it.  

  • Bend, Don’t Break: Flexibility saves more projects than stubbornness ever will.  

  • Test Like You're Paranoid: Find the hidden issues before they cause chaos. 

These aren’t rocket science, but they’re not as easy as they look either. They’re trust-building blocks, and when stacked consistently, they create real momentum. 
 

Taming the Monster of Runaway Expectations 

Here’s where the train jumps the tracks. Maybe the client thinks “simple app” means “instantly done.” Maybe the sales guy swore it would be ready by Christmas (it won’t). Or the client keeps tossing in “one more feature” like it’s free candy, not a timeline grenade. Add shifting tech trends mid-project, and boom expectations are a runaway freight train.  

Picture this:  

A client demands a custom CRM in two months. Spoiler: It’s a six-month job, minimum. The team nods to close the deal, but just days in, they’re drowning in regret. Now it’s all-hands-on-deck chaos, and the client’s drafting a breakup email. 

Or  

A healthcare provider wanted an EHR system up in 90 days. No plan for training, data migration, or HIPAA compliance - just “make it happen.” The result? Buggy software, frustrated doctors, and a vendor in deep trouble. 

Sound familiar? It’s the IT equivalent of promising a buffet meal and serving burnt toast. 
 

Big Names, Bigger Flops: Some Newspaper cuts 

Even the biggest companies fail when hype beats reality. Check out these major mess-ups: 

NHS NPfIT (UK): 
A £10 billion plan to digitize healthcare collapsed. Why? Leaders ignored doctors and nurses, made all decisions from the top, and kept changing the plan until it fell apart. 

FoxMeyer ERP: 
This drug company got a fancy new system that made tracking inventory worse. They rushed the launch, picked the wrong tool, and ended up going bankrupt. 

Vodafone CRM: 
Vodafone tried to combine all their customer info in one place. But things broke down fast, and customers got the wrong bills, and the company got hit with a record £59 million fine. They didn’t test properly. 

Windows Vista: 
Microsoft promised a next-level Windows. What people got was slow, buggy, and confusing. Users hated it and it quickly became a joke. 

The takeaway? Misjudge complexity or skip the basics, and even billions can’t save you.  
 

Why Do Projects Keep Going Off the Rails? 

The reasons are frustratingly familiar: 

  • Poor Planning: 
    Documentation is vague or inaccurate. Deadlines are made up on the fly, and the actual goals? No one really understands them. 

  • No Communication: 
    When clients are left in the dark, trust fades fast. They become skeptical, which kills momentum and morale on both sides. 

  • Overpromising: 
    “Sure, we can do that!” (Spoiler: They couldn’t.) IT teams need to know the power of a well-timed "No." 

  • Team or Culture Misfit: 
    When teams aren't aligned and clients don't understand well, confusion stalls progress. The Scrum Master or Project Manager must always step into the client's shoes to bridge the gap between vision and execution. 

  • Tech Debt Ignored:  
    Cutting corners to move fast creates fragile foundations. What looks quick today becomes expensive and messy down the line.  

  • Client’s Changing the Goalposts:  
    To keep budgets tight, clients agree on scope and details upfront but later try to pressure the team to “just add” more within the original timeline and budget. What they don’t realize is they’re drilling holes in the boat mid-ocean. 

Even with good intentions, these problems still happen, and they only make the crash harder. 
 

The Grim Stats: How Often Do We Actually Get It Right? 

Get ready: 

  • Only about 56% of IT projects hit their original goals, that is just barely passing. 

  • A tiny 0.5% are “perfect” (yes, you read that right). 

  • Over 70% end up late, over budget, or with unhappy clients. 

Source: CHAOS Report by Standish Group & Runn.io project insights. 

That means nearly half don’t meet their goals. But here’s the flip side, there’s a huge opportunity to do things better. 
 

How to Stop the Bleeding 

The Fix-It Kit That Works for IT Service Companies: 

  • Be Honest Early: If it’s not doable, say it upfront. Clients might be upset at first, but they’ll respect honesty later, far more than excuses down the line. 

  • Plan Together: Set timelines and priorities with the client. Shared ownership means fewer surprises. 

  • Put It in Writing: Lock in every “yes” and “no” in writing. It prevents the “I thought you said…” moments. 

  • Check In Often: Weekly reviews help spot issues early, before they become disasters. 

  • Say No When Needed: A clear “no” is always better than a shaky “maybe.” 

  • Calculate Risk and Pressure: Plan for what could go wrong. Always have a backup and don’t commit without knowing the impact. 

  • Keep Sales Out of Estimations: Let the tech team estimate. Don’t trade hours for deals because what you cut now will cost you later. 

 

Final Thoughts 

Let’s be real. The software doesn’t get built at the press of a button. It’s a creative process that takes collaboration, clarity, and consistent execution. 

The client and the service provider (IT service Team) are equal partners working toward a shared goal. They both hold the power to either win or lose the project; success is in their hands. IT services aren’t about selling ready-made products. They’re about building something together. And that only works when both sides show up, stay aligned, and take ownership. 

A word to clients building custom products, workflows, and systems:

If you have deep knowledge of your product and the tech behind it, great. Dive in and collaborate closely with the team on the ins and outs. 
If not, that’s completely okay too. Just be clear about your goals, trust your team, and give them the space they need to deliver something great. 

Because when clients and tech teams work as one, what we build doesn’t just work—it creates real impact. 
And at Cubet, that comes straight from the heart 
 

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About the Author

Mathews Abraham is the Head of Key Accounts at Cubet, dedicated to building strong client relationships. He believes that every client interaction is an opportunity for a new adventure, after all, in his world, "key accounts" could just as easily refer to the keys to unlock great partnerships!

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Mathews Abraham

Head of Key Accounts

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