[TimorLesteStudies] IS Project failures in Developing Countries

Jennifer Drysdale jenster at cres10.anu.edu.au
Thu Jul 12 14:11:34 EST 2007


Please direct any queries to: Abel Pires da Silva <lybel_2000 at yahoo.com>

>Dear Jennifer,
>Below (and attached) is a paper on Information 
>System project failures in developing countries. 
>I think it is also relevant to Project 
>Management (PM) in other sectors as well.
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>Comments are welcomed, especially from people 
>with PM experience in <?xml:namespace prefix = 
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>"urn:schemas-microsoft-com:office:smarttags" 
>/>East Timor or other developing countries.
>
>Regards,
>Abel
>
>==
>
>
>Information System (IS) Project failures in Developing Countries
>
>By Abel P. da Silva
>(Master of Information Technology –MIT- from 
>Swinburne University of Technology, Hawthorn, Melbourne)
>
>May, 2007
>
>Abstract
>
>Project failures in Developing Countries are 
>common and these failures can be categorized 
>into: Project Management Failure, Project 
>Failure, Project sustainability failure and Design–actuality gap.
>Project management failures can be reduced by 
>applying proper Project Management tools.
>Project failures relate to managing issues 
>around the project such us project ownership, 
>project acceptance (user resistance), etc.
>Project sustainability failure relates to 
>post-project delivery period, where after 
>successful project delivery, due to lack of 
>certain aspects (content update, economic 
>sustainability, etc.) the project was abandoned.
>Design-actuality gap relates to the condition 
>where most of the failed IT/IS project in 
>Developing Countries were caused by the fact 
>that those projects were designed in totally 
>different environment (mostly in developed 
>countries), which in fact have opposite 
>conditions with host developing countries, thus, 
>many assumptions made are not based on the 
>reality on the ground, in the end the project was bound to fail.
>
>Keywords: Project Management, Project Failure, 
>Information Technology, Information System, Developing Countries, East Timor.
>Table of Contents
>
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944037>I. 
>Background. 3
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944038>II. 
>Project Failure in Developing Countries. 5
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944039>III. 
>Factors Contributed to the Project Failure. 6
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944040>IV. 
>Propose Steps to Reduce Project Failure. 9
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944041>1. 
>Project Management Failure: 9
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944042>2. 
>Project Failure. 10
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944043>3. 
>Project sustainability failure. 10
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944044>4. 
>Design–actuality gap. 11
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944045>V. 
>Case Study of Failed Project 12
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944046>VI. 
>Conclusions. 18
><http://us.f904.mail.yahoo.com/ym/Compose?box=Inbox&Mid=4263_3993772_76447_3206_1541_0_87235_3089_839138535&inc=&Search=1&YY=31387&y5beta=yes&order=&sort=&pos=0&B=1#_Toc170944047>Bibliography. 
>19
>
>
>
>I. Background
>
>
>
>
>IS project failure refers to the failure of an 
>information system, most notably in its 
>conception, design, construction, deployment, 
>implementation and use (Yardley, 2002).
>Yardley (2002) also characterize IS project failure by the following events:
>-         The degradation of an existing business capability
>-         The degradation of competitive advantage
>-         An increase in operating cost
>-         Failure to meet critical business requirements
>-         Poor levels of user satisfaction
>-         Lost of control over requirements management
>-         Loss of control over planning
>
>Information Technology (IT)/Information System 
>(IS) project failure is a common fact in the 
>industries in developed countries. The reasons 
>behind these failures vary from one sector to 
>another, but the most common reasons for project 
>failures according to Winters (2002) are 
>inadequately trained and/or inexperienced 
>project managers, failure to set and manage 
>expectations, poor leadership at any and all 
>levels, failure to adequately identify, document 
>and track requirements, poor plans and planning 
>processes, poor effort estimation, cultural and 
>ethical misalignment, misalignment between the 
>project team and the business or other 
>organization it serves, inadequate or misused 
>methods, inadequate communication and including 
>progress tracking and reporting.
>
>These reasons for project failures are even more 
>complex in Developing Countries. It is commonly 
>known that developing countries lack human 
>resources that are needed to carry out these 
>projects effectively and efficiently to 
>guarantee the project success. The other 
>contributing factor to the high failure rate is 
>the fact that in developing countries external 
>politics can really determine projects fate, 
>especially in government funded projects. For 
>instance, change in the government could lead to 
>the changing of project’s team, project’s scopes 
>or even change in an already allocated funding for the project.
>
>The importance of learning about project failure 
>in other Developing Countries is so that the 
>other countries do not repeat the same mistake 
>in the future. Developing country like East 
>Timor can learn from these mistakes and apply 
>all the necessary tools, steps and resources to 
>avoid the same mistakes made in similar 
>projects, which are going to be implemented by the country.
>
>
>
>
>II. Project Failure in Developing Countries
>
>
>
>
>Although to date there is no sufficient/strong 
>evidence base to support the claim that project 
>failures in Developing Countries are high; but 
>there are reports from individual developing 
>countries that point toward high rate failure in 
>Developing Countries (Heeks, 2002).
>
>Project failures in Developing Countries vary 
>from country to country and from one sector to 
>another. Specific areas in which IT/IS project 
>failures in Developing Countries are: Software 
>development projects, Information System (IS) 
>projects, E-government projects and other 
>on-line system or computerization delivery projects.
>
>Based on a survey conducted in South Africa by 
>Smith et al. (2006), Project Managers in South 
>Africa are facing many project risks such as 
>lack of top management commitment to the 
>project, unclear/ misunderstood scope/ 
>objectives, schedule Flaw, lack of client 
>responsibility, ownership and buy-in of the 
>project and it’s delivered systems, no planning 
>or inadequate planning, project not based on 
>sound business case, lack of available skilled 
>personnel, not managing change properly, Lack of 
>adequate user involvement and poor risk 
>management. In Colombia (Latin America), 
>according to Iconnect online report on the 
>Connecting Colombian Schools: National Program 
>of Bilinguals and Informatics project, the 
>reasons behind this particular project failure 
>were lack of skilled personnel, lack of 
>planning, lack of coordination of project’s 
>stakeholders and changing of the government 
>(Murillo, 1999). In Thailand, major IS project 
>in taxation department was only partly 
>successfully delivered. The reasons were vary 
>from unclear project scopes and requirements and 
>changing software scopes, which required 
>changing in hardware specifications (the problem 
>was the hardware already delivered based on the 
>initial software requirements) (Schware & Bhatnagar, 2001).
>
>
>III. Factors Contributed to the Project Failure
>
>
>
>
>Yardley (2002) defines that project failure 
>factors for IS are not limited to project 
>management, but also include those project 
>activities that lies outside the scope of 
>project management. These factors some 
>originated from within the business, such as 
>strategy, organization, roles, and 
>responsibilities; others, such as competitors, 
>politics, and regulations will be external to the business.
>
>In Developing Countries, IS project failure 
>factors are both from the project management and 
>also in many instance, from the factors outside the project management.
>
>Yardley (2002) describes factors that 
>contributed to project failure that are relevant 
>both to project failure in Developed Countries 
>as well as to the project failures in the Developing Countries.
>
>Project Management Failure factors (Yardley, 2002):
>    * Inexperienced Project Manager
>    * Poor project planning
>    * Poor requirements management
>        * Not capturing sufficient requirements
>        * Capturing a shopping list of requirements
>        * Changing requirements
>    * Dependency on project management tools
>    * No clear project schedule
>    * Weak leadership
>    * Inadequate testing
>
>Key contributors to project failure:
>    * Weak ownership
>    * Immature or unproven technology
>    * Lack of user involvement
>    * Weak business case
>    * Poor communication
>    * Failure to examine existing business 
> process and goals before deploying technology
>
>Apart from the above factors, Heeks (2002) 
>argues that many project failures in Developing 
>Countries are caused by the poor project 
>planning (system design phase). Heeks (2002) 
>explains that in Developing Countries, many 
>projects were not designed according to the 
>reality on the ground where the system is to be 
>used; it is the Design–Actuality Gaps (Heeks, 
>2002). An example can be drawn from the 
>Philippines where an aid-funded project aimed to 
>introduce a field health information system was 
>designed according to an American model that 
>assumed the presence of skilled programmers, 
>skilled project managers, a sound technological 
>infrastructure, and a need for information 
>outputs like those used in an American 
>health-care organization. In reality, none of 
>these was present in the Philippine context. The 
>result was a large design–actuality gap along 
>dimensions including information, technology, 
>and staffing/skills. The outcome was that the 
>information system failed (Heeks, 2002).
>
>The same mistakes were repeated in East Timor 
>when the International Labor Organization (ILO) 
>was executing a project in Employment Service 
>sector that aimed to strengthening East Timor’s 
>national employment services (ILO, 2001). The 
>project plan was developed by consultants 
>working outside East Timor, based merely on the 
>similar projects being implemented in other 
>Developing Countries, for instance in Mozambique 
>where East Timor share common Portuguese 
>inheritances (mainly Portuguese language).
>
>The outcome was disastrous to the project since 
>many project assumptions were simply inaccurate; 
>including the assumption that the project 
>specialist positions could be filled by East 
>Timorese. The 4 (four) specialists required by 
>the project were the Employment Service 
>specialist, the Labor Market Analyst, the 
>Vocational Training Specialist and the 
>Management Information System Specialist. Since 
>these positions were assumed to be filled by 
>locals, the allocated fund for these positions 
>in the project plan was very small compare to 
>budget allocated for those positions categorized as international posts.
>
>In the end, when the project could not obtain 
>specialists with desired level of 
>qualifications, the project schedule and budget 
>had to be revised to include considerable time 
>to train those staff. The project condition were 
>even deteriorated since the training failed to 
>produce an acceptable outcome hence the project 
>staff were forced to start to work and learning 
>at the same time (learning by doing approach).
>
>Heeks (2002) also argues that in Developing 
>Countries there is another type of project 
>failure called the “sustainability failure”. 
>This is an initiative that at first succeeds but 
>is then abandoned after a year or so. An example 
>is the creation of a set of touch-screen kiosks 
>for remote rural communities in South Africa’s 
>North-West Province. These were initially well 
>received by the communities. However, the 
>kiosks’ lack of updated or local content and 
>lack of interactivity led to disuse, and they 
>were removed less than a year later (Heeks, 2002).
>
>Heeks (1999) also describe that  many software 
>projects in Developing Countries also facing 
>lack of infrastructure in particular a sizeable 
>installed computer base, reliable and pervasive 
>telecommunications links both domestically and 
>internationally, and reliable electricity 
>supply. These factors may also be key causes of 
>project “sustainability failure” because most 
>Developing Countries like East Timor lack 
>reliable electricity supply and telecommunication links.
>
>
>
>
>
>IV. Propose Steps to Reduce Project Failure
>
>
>
>
>1.    Project Management Failure:
>The Project Management failure in Developing 
>Countries can be reduced by applying Project 
>Management knowledge areas in Scope management, 
>Time management, Cost management, Quality 
>management, Human resource management, 
>Communication management, Risk management and 
>Procurement management and Integration management (Schwalbe, 2006):
>
>·        Scope Management involves defining and 
>managing all the work required to complete the project successfully
>·        Time management includes estimating how 
>long it will take to complete the work, 
>developing and acceptable project schedule, and 
>ensuring timely completion of the project
>·        Cost management consists of preparing 
>and managing the budget for the project
>·        Quality management ensures that the 
>project will satisfy the stated or implied needs for which it was undertaken
>·        Human resource management is concerned 
>with making effective use of the people involved with the project
>·        Communication management involves 
>generating, collecting, disseminating, and storing project information
>·        Risk management includes identifying, 
>analyzing, and responding to risks related to the project
>·        Procurement management involves 
>acquiring or procuring goods and services for a 
>project from outside the performing organization.
>·        Integration management is an 
>overarching function that affects and is affected by all of the other areas.
>
>The application of project management software 
>like Microsoft Project will also help to reduce 
>project management failure, since it provides 
>dynamic project status to the project managers 
>(through Gantt chart, for example).
>
>2.    Project Failure
>There are steps to reduce the likelihood of the Project failure:
>·        Justification of the Project. The top 
>executives (of corporate or governments) must 
>demonstrate that there are real needs to have 
>the project by implemented, thus they will be 
>able to provide all the required resources for 
>the project to be successful. Lack of commitment 
>by the project owners (especially from the top 
>executive) will in the end cause lack of 
>allocated project resources that are required 
>for the project to be successful.
>·        User involvement should also be taken 
>into account seriously to guarantee the project 
>successfulness. Users that do not participate 
>enough in the project development process tend 
>to demonstrate the lack of enthusiasm to the 
>product result and persistent resistance in using the product.
>
>3.    Project sustainability failure
>Project sustainability failure happens to 
>projects that were initially successfully 
>implemented, but the projects were abandoned 
>after the implementation phase. Lack of update 
>content and lack of infrastructure are the main 
>cause for this type of project failure.
>To minimize this failure, projects owners (both 
>governments and corporations) should allocate 
>adequate efforts for project post-delivery to 
>guarantee the project sustainability through a 
>proper viability study (technology, economic, 
>human resources and infrastructure, etc. sectors).
>Adequate training and support (both technical 
>and financial) should be allocated to make sure 
>that the project will be self sustained after it was delivered.
>
>4.    Design–actuality gap
>Heeks (2002) outlines that Design-actuality gap 
>can be reduced or even closed by:
>·        Actuality improvisation: changing local 
>actuality to make it closer to IS design.
>For example: during the introduction of MIS into 
>private-sector enterprises in Sri Lanka 
>(Goonatilake et al., 2000). Here the rational 
>design of the MIS often mismatched the rather 
>chaotic nature of most enterprise procedures. 
>Actuality was altered by, prior to 
>computerization, ensuring the introduction of 
>basic manual production planning, control and 
>accounting procedures. Computerization could 
>subsequently proceed with a greater chance of success (Heeks, 2002).
>·        Design improvisation: changing the 
>(often “imported”) IS design to make it closer 
>to Developing Countries (DC) user actuality.
>For example: an original design option for a new 
>hospital IS in Guatemala was to reengineer 
>administrative processes to make them more 
>efficient (Silva et al., 2000). But, in reality, 
>hospital directors supported current procedures 
>and wanted controls to remain in place to ensure 
>corruption was held in check. The design was 
>therefore amended to ensure that these current 
>work processes were supported by the new system (Heeks, 2002).
>
>
>
>
>V. Case Study of Failed Project
>
>
>
>
>Thailand’s Project Failure Case: Thailand’s Tax 
>Computerization Project funded by the World Bank:
>
>In January 1992, the government introduced a 
>major tax-restructuring program meant to 
>increase efficiency of the tax system, make the 
>tax structure more competitive with regional 
>neighbors, and prepare for a potential shift to 
>indirect taxes as a larger share of revenues. 
>Based on recommendations made by the IMF and 
>World Bank teams in the late eighties, the 
>business tax (a tax levied on receipts) was 
>replaced by a Value Added Tax (VAT) and the 
>effective rates on corporate and income taxes were lowered.
>
>Simultaneously, the government embarked on a 
>program to modernize the Revenue Department 
>sought World Bank financing to overhaul its 
>existing computer system. The objective of the 
>project is "to support tax administration 
>through the provision of hardware, software, and 
>systems for tax processing and analysis”. The 
>goal of the project was to assist the RD in 
>establishing a comprehensive, integrated data 
>management and processing system for all taxes 
>it administers. These include the personal 
>income tax, the corporate income tax, the 
>business tax, VAT, petroleum income tax, foreign 
>travel tax and the withholding tax. A national 
>computer system was expected to: decentralize 
>tax administration, introduce a single Tax 
>Identification Number (TIN) to integrate all 
>taxes and returns form entity; and provide 
>computerized billing and collection of all 
>taxes. In turn, these changes were expected to 
>produce: faster and more efficient processing 
>and collection of revenues and improved tax 
>records, with better access and ability to 
>conduct audits at each administration (Schware & Bhatnagar, 2001).
>
>The Tax Computerization Project (TCP) was 
>financed by a loan from the World Bank. The TCP 
>is a turnkey project in which a consortium of 
>four companies (RDC). The TCP has to provide 
>operational software for twenty-five systems 
>applications, various databases, management 
>information systems and financial systems 
>including online networking for most of revenue 
>offices throughout the country and specific 
>networking with government agencies. The basic 
>transaction systems included the followings: TIN 
>(Tax Identification Number), VAT (Value Added 
>Tax), SBT (Specific Business Tax), PIT 
>(Personnel Income Tax), WT (Withholding Tax) and 
>PT (Petroleum Tax). Other system functions 
>included: refund and audit, delinquent taxpayers 
>management, appeal and litigation, canvassing 
>taxpayers, minimum value added tax assessment and intelligence.
>
>The network consisted of departmental network: 
>connecting the Revenue Office in Bangkok, 
>Regional Offices, Are Offices and all the 
>divisions in the Revenue Department, Regional 
>Network: connecting all computer centers of nine 
>Regional Offices and each regional computer 
>center linking to the provinces under each 
>region, Provincial network: networking all 
>District Offices in each province by centralized 
>processing at the Provincial Computer Center, 
>District level: connecting all 826 district 
>offices, Networking with other government 
>agencies such as Bureau of Registration 
>Administration, Department of Local 
>Administration, Custom Departments, Excise 
>Department, the Comptroller-General Department 
>and the Ministry of Commerce. The hardware 
>configurations included: two large of mainframe 
>(IBM ES/9000 model 260), 9 medium mainframes 
>(IBM RISC/1600 model 7015, for Regional 
>Offices), 48 small mainframes (IBM RISC/1600 
>model 7013, for Provincial Offices), 9 data 
>entry systems for Regional Offices, 15 remote 
>line printers for Provincial Offices, 114 data 
>entry devices, and Intelligent Terminal or stand 
>alone PCs up to 1,319 terminals (Kitiyadisai, 2000).
>
>There were no problems in hardware delivery 
>part, but problems were mainly from the 
>development of the systems’ software. By the end 
>of the project, the RDC could only deliver a 
>limited version for VAT and Specific Business Tax (SBT).
>
>There were many problems in the implementation 
>phase of Thailand’s Tax Computerization Project (TCP):
>    * Project Cultural Difference: The TCP was 
> meant to deliver a new automatic system into 
> the current civil servants’ environment. There 
> was no preparation in the user’s side, so 
> transformation from the existing system to the 
> new system was a serious matter. Moreover, the 
> working style of foreign consultants, project 
> leaders and system analyst/programmers was 
> unfamiliar to the slow pace and cautious civil 
> servants and that the difficulty of 
> communicating in foreign language can not be 
> underestimated (Kitiyadisai, 2000).
>
>    * Project Planning: The most important 
> factor in causing the failure of the TCP was 
> the implementation of the VAT (Value Added 
> Tax). The RDC (contractor) was requested to 
> sign the contract in August 1991. After the 
> signing of the contract, the new VAT system was 
> introduced. This caused major changes in the 
> system requirements compare to the one that was 
> signed in August 1991. The singing should 
> instead take place in the beginning of 1992 in 
> order to take into account the requirements of 
> the new tax system (Kitiyadisai, 2000).
>
>    * Project Accountability: The contract was 
> loosely drafted with vague systems’ 
> requirements, there were no concrete details on 
> the specific functions of the application 
> programs, their capabilities or expected 
> outputs. This led to disagreement over the 
> scope of the project and the responsibility of 
> the contractor (Kitiyadisai, 2000). 
> Consequently, the contractor failed to develop 
> project specifications and was therefore unable 
> to develop the application software. When the 
> specifications finally specified and designed 
> suitable applications software, it became clear 
> that the hardware system software, database 
> software, telecommunications software and the 
> hardware that already been delivered would have 
> to be replaced (Schware & Bhatnagar, 2001).
>
>    * Project Evaluation: Although there were 
> steering committee, a Thai consultant and a 
> specially commissioned foreign consultant to 
> follow up and monitor to the project, the 
> process was not disciplined and filled with 
> many cancellations and postponements 
> (Kitiyadisai, 2000). Moreover, Due to the lack 
> of centralized milestone reporting, there was 
> no single point from which management could 
> obtain a clear picture of project progress. 
> Without a precise measurement of work to be 
> were thousands of tasks and sub-tasks requiring 
> many thousands of work hours and the 
> co-operation hardware, systems software, and 
> network installation and support activities), 
> task times, and estimates, underlying schedules 
> tended to be inaccurate and of little 
> operational value (Schware & Bhatnagar, 2001). 
> Although the Revenue Department assigned 
> several senior managers to the project, as well 
> as a dozen support staff, most management 
> responsibilities were not clearly defined 
> (clear written terms of reference) and so roles 
> such as the Implementation Manager had remained 
> unfilled. The Implementation Agency was also 
> lacked skills in systems integration 
> engineering, facilities management, 
> applications development software engineering. 
> Furthermore, proper project monitoring tools 
> were not used; and the complexity of software 
> development process was neither understood nor 
> assessed. (Schware & Bhatnagar, 2001).
>
>    * Project Development Methods: The lack of 
> an appropriate and well-specified project 
> objective was the beginning of all troubles. 
> The project's proponents were overly eager to 
> purchase and install hardware and deliver 
> inadequate attention and patience to project 
> preparation (Schware & Bhatnagar, 2001). The 
> scope of the systems’ requirements was loosely 
> stated in the contract which made the 
> contractor rather surprised by the unexpected 
> range of systems software and capabilities 
> demanded by the Revenue Department. In 
> addition, the contractor did not conduct 
> thorough system analysis of all the tax systems 
> and there was no known systems analysis 
> document. The subcontractor on software 
> provision had to analyze users’ requirements 
> and the complicated VAT and other tax systems 
> and learn the relevant laws from Thai personnel 
> whose mother tongue was not English. The 
> coordination among the different contractors 
> and subcontractors was not adequate as 
> activities and plans did not coincide according 
> to plan. Frequent changes in users’ 
> requirements and the high turnover of 
> programmers due to a change in subcontractors 
> made it difficult to progress as new analyst 
> had to start the learning process of Thai taxation (Kitiyadisai, 2000).
>
>    * Project Under resource: Although the 
> development team was under-resourced, it was 
> thought that pressure on the team compensate 
> for under resourced. In fact, a lack of human 
> resources and experience contributed by poorly 
> prepared bidding document. The IFB included 
> requirements that were met by only one system 
> specifications produced by the Revenue 
> Department were either too specific (e.g., 
> specifying main frame, network protocol, etc.) 
> or too generic (e.g., software requirements 
> were not specific enough) (Schware & Bhatnagar, 2001).
>
>    * Project Power and Politics: The 
> termination of the project was inevitable as 
> problems and difficulties escalated at the cost 
> of the RDC and the revenue 
> Department.  According to the regulations and 
> contract, the contractor would have to pay 
> penalty for being unable to deliver all the 
> specified systems. But this would have meant to 
> a long drawn out legal process and a halt to 
> the system already in operation. The RDC, whose 
> main partner was IBM, a multinational with 
> substantial leverage, and the government agreed 
> to compromised and terminate the project in 
> August 1998 (Schware & Bhatnagar, 2001).
>
>    * Project User Resistance: The new system 
> required new skills to operate. Therefore, the 
> users’ of the system which did not have the 
> skills needed to be trained in order to reduce the users’ resistance.
>
>    * Project Irrationality: The contractor 
> (RDC) changed its software subcontractor and 
> later requested for over a year extension of 
> its deadline due to the changes in the new tax 
> system that was also changed user’s 
> requirements. At the same time, the government 
> of Thailand was well under the economic crisis 
> and was pushing to finish the system as early 
> as possible so they can use the system for more taxes (Kitiyadisai, 2000).
>
>
>
>
>
>  VI. Conclusions
>
>
>
>
>There are several types of project failures in 
>Developing Countries: Project Management 
>Failure, Project Failure, Project sustainability 
>failure and Design–actuality gap.
>Project failures rate in Developing Countries 
>(DC) can be reduced significantly through the 
>application of standard project management tools 
>and more specifically, better project planning 
>that take into account the conditions of the 
>country where the project is going to be implemented.
>
>The most common practice is by having the 
>project planned in totally different environment 
>(i.e. developed countries) and by people with 
>little or no specific knowledge about the host 
>country which most likely to adopt inaccurate 
>assumptions which in turn contribute to the failure of the project.
>Implementing agencies need to have expertise in 
>contractor management, including knowledge of 
>legal aspects of contract administration, to 
>help determine such issues as change-of-scope and compliance with contract.
>
>In summary, the tasks of requirement 
>specification, analysis, and design must be 
>carried out diligence and skilled resources done 
>at the initiation stage. Should gaps remain, the 
>implementation authority should be able to spot 
>the weaknesses in a timely manner through the 
>use of appropriate project management tools (Schware & Bhatnagar, 2001).
>
>
>
>
>
>Bibliography
>
>
>
>
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>
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