I have been helping with a Microsoft Dynamics CRM 2011 tender and through the process I found a really interesting article. Although this article is rather old (produced back to 2004), it has some really interesting statistics. Here is the abstract of the article:
When developing software, research has shown that there is an inverse correlation between the size of a project and the probability that it will actually be completed (see fig. 1.0). It’s not uncommon to hear about a large bank that lost $7 million after pulling the plug on a $30 million project. The likelihood of success is greater for outsourced projects when compared to in-house development, most likely because software development is the core competency of third party developers. This means that projects that are larger in scope should most likely be developed by a third party developer or you should scour the landscape for COTS application that can be customized to your requirements.
| Project Size | People | Time (months) | Success |
| <$750k | 6 | 6 | 55% |
| $750k-$1.5M | 12 | 9 | 33% |
| $1.5m-$3m | 25 | 12 | 25% |
| $6m-$10m | 250+ | 24+ | 8% |
| $10m+ | 500+ | 36+ | 0% |
The actual source of the document is here http://www.insidus.com/BuyorBuild.pdf Hope you find this interesting too!
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