According to the Standish Group that analyzed 400 IT companies / projects, IT project failure rates have increased and success rates have decreased. 31% of the analyzed projects were considered successful whereas 24% were found to be failures and have been canceled before projects have been completed. Of all projects, 44% were over time, over budget, or below expectations.

The chairman of The Standish Group, Jim Johnson, stated that this would be the first increase in project failure rates. Due to the recession, they waited longer to be sure that projects were influenced by the economy. According to the Chairman, more people are willing to cancel a project earlier than usual. However, the failure outcome of the project can often not be distinguished by the company. So it is uncertain if the project failed due to the lack of planning or the recession.

In terms of project management, the layoffs caused by the recession influence the outcome of the project. The project manager or leading staff has to take on more work, and thus less time is available for project planning, the key factor in project management.

Due to the recession, companies tend to favor risk aversion, so that projects are double-checked and slowed down. Too much governance can lead to a losing interest of the stakeholder and dropping the entire project.

Source:
http://www.computerworld.com/s/article/9134547/Recession_Causes_Rising_IT_Project_Failure_Rates?taxonomyId=73