Irish firms spend €667,000 on zombie projects yearly

Large organisations in Ireland spend an average of €667,000 a year on zombie projects, according to Saros Consulting. The finding comes from a survey of 200 IT decision-makers in organisations with more than 250 employees.

The consultancy defines zombie projects as initiatives that no longer offer value or strategic relevance but continue to absorb time, money and staff because they have not been formally stopped. Its research ties that spending to wider weaknesses in IT planning and leadership alignment.

Almost one in five large organisations in Ireland do not have an IT strategy, the survey found. Only half of IT decision-makers described their organisation's IT strategy as ambitious.

Even where a strategy exists, respondents reported gaps in how current and well understood it is. One in seven said their IT strategy is not up to date, while only two-thirds said leadership teams understand their organisation's IT strategy.

The results point to a disconnect between strategic intent and day-to-day investment decisions. While 64% of IT leaders said their IT strategy helps them avoid investing in the wrong technologies, and 61% said it supports better decision-making, organisations are still committing substantial sums to work that no longer matches business priorities.

Hidden costs

Zombie projects can persist for reasons beyond technical decision-making. Organisations may be reluctant to halt an initiative because doing so can require explanations at board level, staff retraining, or the retirement of software and systems already embedded in operations.

As a result, IT budgets can remain tied up in projects that have lost their purpose. For larger employers, the average annual cost identified in the survey suggests abandoned or outdated workstreams may be placing a meaningful drag on spending discipline.

The findings also offer a broader snapshot of how Irish organisations view IT strategy. If nearly a fifth of large organisations have no strategy in place, and a sizeable minority say existing plans are either not ambitious or not current, that points to uneven governance across the market.

For senior management teams, the issue is not only whether an IT plan exists, but whether it is understood well enough to shape decisions about what should continue to receive funding. The survey suggests this remains a weak point in some organisations, with about a third of respondents saying leadership teams do not fully understand the strategy.

Leadership gap

The research was conducted by Censuswide on behalf of Saros Consulting and focused on IT decision-makers in the Republic of Ireland. It forms part of the company's CIO Strategy Report 2026.

Ray Armstrong, Co-Founder and Co-Chief Executive Officer at Saros Consulting, said: "Zombie projects represent one of the biggest hidden costs for businesses in Ireland. Yet 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. This could include explanations to the board, training people on new systems, or the cumbersome processes involved in retiring software. Over time, however, these projects consume budget and divert resources away from where they are needed. Businesses need to be willing to challenge existing investments and make difficult decisions where necessary. A clear and well-understood IT strategy can help organisations avoid investing in projects that no longer support their goals."

Justin van der Spuy, Co-Founder and Co-Chief Executive Officer at Saros Consulting, said: "The persistence of zombie 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. What is needed now is greater visibility into where technology budgets are being spent and whether that spending is strategic or wasteful. 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."