Over the last 20 to 30 years, we continue to read about companies blowing their IT-enabled transformation budgets and schedules. At least one new study comes out each year showing that 30% – 60% of all large projects exceed their expected budgets by 25% or more. Consequently, purchasing departments have been implementing tighter contracts with system integrators in hopes of reducing the amount of budget uncertainty.
In response, systems integrators have redrawn (in the initial contract proposal) from areas of the contract that they cannot predict with sufficient precision.
