List of failed and overbudget custom software projects


This is a list of notable custom software projects which have significantly failed to achieve some or all of their objectives, either temporarily or permanently, and/or have suffered from significant cost overruns. For a list of successful major custom software projects, see Custom software#Major project successes.
Note that failed projects, and projects running over budget, are not necessarily the sole fault of the employees or businesses creating the software. In some cases, problems may be due partly to problems with the purchasing organisation, including poor requirements, over-ambitious requirements, unnecessary requirements, poor contract drafting, poor contract management, poor end-user training, or poor operational management.

Permanent failures

Because software, unlike a major civil engineering construction project, is often easy and cheap to change after it has been constructed, a piece of custom software that fails to deliver on its objectives may sometimes be modified over time in such a way that it later succeeds - and/or business processes or end-user mindsets may change to accommodate the software. However, sometimes, for various reasons, neither approach succeeds, and this may be considered as another level of failure - a permanent failure.
StartedTerminatedSystem nameType of systemCountry or regionType of purchaserProblemsCost 'Outsourced or in-house?Outcome
1980s1993TAURUSElectronic trading platformUK Stock exchangeScope creep, cost overrun. The project was never completed.£75m?Cancelled
19821994FAA Advanced Automation SystemAir Traffic ControlUSAFederal Aviation AdministrationCost overruns, underestimation of ATC complexity, delays, non-incremental change. existing system.$3B-$6B?Scrapped
19841990RISPIntegrated computer servicesUK Wessex Health AuthorityScope creep, cost overrun. The project was never completed.£63m '?Cancelled
19972000BolitCustomer service, finance and administration systemSWEPatent and Registration OfficeToo complicated, bad functioning, cost overrun. The project was after completion never used, the agency still today does not have a working IT system.SEK 300m OutsourcedScrapped
19992006CSIO PortalCommon technological platform for brokers and insurers to improve workflow efficiencyCanadaCentre for Study of Insurance OperationsLow user adoption, conflict between insurers, new technology, lack of funding~$15 million CADOutsourced to IBMAbandoned
20022011NHS Connecting for HealthElectronic care recordsUKCentral governmentBeset by delays and ballooning costs, and the software part of it was never finished. The government was also criticised for not demonstrating value for money. Although the contracts were drafted to ensure that the contractors would be forced to bear a significant portion of the cost of the project going wrong if it did go wrong, in reality this did not always happen. The NPfIT was described by Members of Parliament as one of the "worst and most expensive contracting fiascos" ever.£12bn 'OutsourcedDiscontinued, but some parts continued
20052012Expeditionary Combat Support SystemMilitary Enterprise Resource PlanningUSAir forceNo significant capabilities ready on time; would have cost $1.1bn more just to get to 1/4 of the original scope.$1.1bnOutsourced - including requirementsCancelled
20072012:da:PolsagPolice case managementDENPoliceDid not work properly, technical problems with contractor.DKK 500m OutsourcedCancelled
20072014e-BordersAdvanced passenger information programmeUKUK Border AgencyA series of delays.over £412m OutsourcedCancelled
20072010Försäkringskassan SAPDental health service systemSWESocial Insurance AgencyNot fit for purpose, multiple delays, cost overrun.SEK 10bn Outsourced, then insourcedCancelled
20082013Digital Media InitiativeDigital production, media asset managementUKState broadcasterBy 2013, the project was judged to be obsolete and was scrapped by BBC management. The BBC Director General said it had been a huge waste of money.more than £98m 'Outsourced, then insourced, then outsourced againCancelled
20092013Crime & criminal intelligence logging systemUK Police ForceNot fit for purpose£14.8mOutsourcedScrapped
20112014Pust SiebelPolice case managementSWEPolicePoor functioning, inefficient in work environments.SEK 300m OutsourcedScrapped
20122014Cover OregonHealthcare exchange websiteUSState governmentSite was never able to accept online enrollments, so users were instructed to mail in paper enrollments instead.approx $200mOutsourcedCancelled, then client and supplier both sued each other

Temporary issues and budget overruns

Projects with ongoing problems

Until the significant problems with these projects are resolved, or the projects cancelled, it is not yet possible to classify them into one of the above categories.
StartedSystem nameType of systemCountry or regionType of purchaserProblemsCost 'Outsourced or in-house?
2013Canada.caGovernment website portalCANCentral governmentOriginal plan was to consolidate 1,500 Canadian government websites into a single portal on a single platform. In over three years, only 10,000 webpages of a total 17 million have successfully been migrated.$9.4 million + $28 million Outsourced platform and proprietary software
2007PRIOLogistic and financial systemSWEArmed ForcesParts of the system was put into use in 2009, with reports of big usability issues following. In 2012 troubles with supply of spare parts was reported, causing multiple Gripen fighter jets to be put out of service. The air force was operating at a 70% capacity, another area was reported to operate at a 3% capacity with half of the staff not able to work at all. It would take up to a year to restore capacity. At this point the cost to scrap the project and develop a new one was estimated to be SEK 11bn. Not seen as an alternative, the development continued and the original budget of SEK 2.4bn was increased to 4bn. In 2015 the project was still on its way to be fully implemented.SEK 4bn Technical aspects outsourced
2013Universal CreditWelfare payments system consolidationUKCentral governmentThe schedule has slipped, with the final delivery date now expected to be 2021, although the system is gradually being introduced. In 2013, only one of four planned pilot sites went live on the originally scheduled date, and the pilot was restricted to extremely simple cases.£12.8bn 'Outsourced
2010Standard Business Reporting Electronic Reporting to GovernmentAUSStatutory authority6 years after program started in 2010, approximately $800m to $1bn has been spent in total. A significant portion of this spend was composed of contracting fees to IBM and Fujitsu. As of early 2016, business take up of electronic reporting was 2-3%. Program has also suffered from significant scope creep and confused objectives. It is likely that choice of XBRL as the reporting format is the main driver behind low take-up.~$1bn to date Technical aspects outsourced