For over a third of companies surveyed worldwide, 25 percent or more of IT projects are delivered late, according to a poll of 1,125 senior IT executives in organizations with a turnover greater than US$500 million, conducted by The Economist Intelligence Unit and commissioned by Hewlett-Packard.

What’s more, in 57 percent of surveyed firms, no more than half of IT projects have produced the intended positive business outcomes over the last three years. Project failure rate in the Americas region was lower than in Europe, the Middle East and Africa.

The survey also found there was a direct correlation between slower delivery of IT projects and services and lower business profitability. The main consequences of project delays include delayed product launches, losing anticipated revenues, and delays to planned cost savings – all of which impact company profitability.

The most profitable companies, those with a 25 percent or greater profit growth since 2005, tended to have faster development times, according to the survey. 079489