Poor management of IT projects is costing UK and Irish businesses in excess of a quarter of a billion pounds every year.

And a quarter of all technology programmes end up more than 50 per cent over budget, according to a survey of 100 chief information officers (CIOs) published today by IT management firm CA.

CIOs are still principally being judged on whether they deliver within budget rather than delivering strategic value to the business, said CA director David Groves.

“As project complexity deepens , and demand on IT increases, it is crucial that CIOs invest in the tools and training to focus budget and resources on projects that deliver business value,” said Groves.

A typical large firm runs an average of 29 technology projects at any one time, with an average budget of between £1m and £5m. Poor forecasting is to blame for 50 per cent of budget overspend, 30 per cent from changes to the project scope during implementation and 36 per cent from conflicts between multiple projects, says the research.