AuthorsM. Jørgensen
TitleFailure Factors of Small Software Projects at a Global Outsourcing Marketplace
AfilliationSoftware Engineering, Software Engineering
Publication TypeJournal Article
Year of Publication2014
JournalJournal of Systems and Software
KeywordsConference, Internal Seminar, University of Oslo, Workshop

The presented study aims at a better understanding of when and why software projects fail. The analysis is based on a data set of 785,325 small-scale outsourced software projects. A binary logistic regression model relying solely on information known at the time of a project's start-up correctly predicted 74% of the project failures and 67% of the non-failures. The model-predicted failure probability corresponded well with the actual frequencies of failures for most levels of failure risk. The model suggests that the factors connected to the strongest reduction in the risk of failure are related to previous collaboration between the client and the provider and a low failure rate of previous projects completed by the provider. We found the characteristics of the client to be almost as important as those of the provider in explaining project failures and that the risk of project failure increased with an increased client emphasis on low price and with an increased project size. The identified relationships seem to be stable across the studied project size categories, which indicate that the results may potentially be applicable to larger projects than the small-scale projects dominating this data set.

Citation KeySimula.simula.1986