Irish enterprises are losing an average of €667,000 annually on outdated initiatives, according to a report from Saros Consulting. These initiatives continue to absorb budgets and resources, highlighting gaps in IT strategy and governance.
The report, published in Saros Consulting’s CIO Strategy Report 2026, surveyed 200 IT decision-makers in organisations with 250+ employees. It found that many businesses allocate significant resources to projects that no longer deliver meaningful value or align with strategic objectives.
Weaknesses in IT strategy and leadership alignment may be contributing to the persistence of these outdated projects. Almost one-in-five large organisations do not have an IT strategy in place, while only half of IT decision-makers believe their organisation’s IT strategy is ambitious.
Even among organisations with a strategy, confidence in its effectiveness remains mixed. One in seven respondents say their IT strategy is not up-to-date, while just two-thirds say leadership teams understand and know their organisation’s IT strategy.
“Zombie projects represent one of the biggest hidden costs for businesses in Ireland,” said Ray Armstrong, co-founder and co-CEO of Saros Consulting. “Organisations continue to invest in initiatives that no longer align with business objectives because the perceived hassle of stopping them outweighs the cost of maintaining them.”
Organisations continue to spend significant sums on projects that no longer deliver value or align with business priorities. The research highlights the importance of strategic planning in technology investment decisions, with almost two-thirds of IT leaders saying their IT strategy helps them avoid investing in the wrong technologies.
Justin van der Spuy, co-founder and co-CEO of Saros Consulting, explained that the persistence of outdated projects highlights a wider challenge. “When Irish organisations continue funding projects that are no longer delivering value, they not only increase costs but also create debt and risk.”
Organisations that take a no-tolerance approach to outdated projects and ensure their IT strategy remains aligned with business objectives will be far better positioned to respond to changing market demands. Ray Armstrong noted that businesses need to be willing to challenge existing investments and make difficult decisions where necessary.
