List of failed and overbudget custom software projects
Updated: 11/6/2025, 1:43:11 AM Wikipedia source
This is a list of notable custom software projects which have significantly failed to achieve some or all of their objectives, either temporarily or permanently, and/or have suffered from significant cost overruns. Note that failed projects, and projects running over budget, are not necessarily the sole fault of the employees or businesses creating the software. In some cases, problems may be due partly to problems with the purchasing organisation, including poor requirements, over-ambitious requirements, unnecessary requirements, poor contract drafting, poor contract management, poor end-user training, or poor operational management.
Tables
· Permanent failures
TAURUS
TAURUS
Started
1980s
Terminated
1993
System name
TAURUS
Type of system
Electronic trading platform
Country or region
United Kingdom (London)
Type of purchaser
Stock exchange
Problems
Scope creep, cost overrun. The project was never completed.
Cost (expected)
£75m
Outsourced or in-house?
?
Outcome
Cancelled
FAA Advanced Automation System
FAA Advanced Automation System
Started
1982
Terminated
1994
System name
FAA Advanced Automation System
Type of system
Air Traffic Control
Country or region
United States
Type of purchaser
Federal Aviation Administration
Problems
Cost overruns, underestimation of ATC complexity, delays, non-incremental change. existing system.
Cost (expected)
$3–6b
Outsourced or in-house?
?
Outcome
Scrapped
RISP
RISP
Started
1984
Terminated
1990
System name
RISP
Type of system
Integrated computer services
Country or region
United Kingdom (Wessex)
Type of purchaser
Wessex Health Authority
Problems
Scope creep, cost overrun. The project was never completed.
Cost (expected)
£63m (£29m)
Outsourced or in-house?
?
Outcome
Cancelled
INCIS
INCIS
Started
1994
Terminated
1999
System name
INCIS
Type of system
Crime information
Country or region
New Zealand
Type of purchaser
New Zealand Police
Problems
Frequently changing development staff, hardware, software and scope.
Cost (expected)
approx NZD$110m
Outsourced or in-house?
Outsourced to IBM NZ
Outcome
Cancelled, then hardware partially reused
Bolit
Bolit
Started
1997
Terminated
2000
System name
Bolit
Type of system
Customer service, finance and administration system
Country or region
Sweden
Type of purchaser
Patent and Registration Office
Problems
Too complicated, bad functioning, cost overrun. The project was after completion never used, the agency still today does not have a working IT system. [as of?]
Cost (expected)
SEK 300m ($35m)
Outsourced or in-house?
Outsourced
Outcome
Scrapped
CSIO Portal
CSIO Portal
Started
1999
Terminated
2006
System name
CSIO Portal
Type of system
Common technological platform for brokers and insurers to improve workflow efficiency
Country or region
Canada
Type of purchaser
Centre for Study of Insurance Operations
Problems
Low user adoption, conflict between insurers, new technology, lack of funding
Cost (expected)
~$15 million CAD .mw- .mw- .mw- .mw- .mw- .mw- body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw- .mw- .mw- .mw- .mw- .mw- .mw- .mw- } }"CSIO portal abandoned due to lack of insurer support and availability of other solutions".
Outsourced or in-house?
Outsourced to IBM"Reconfiguring CSIO".
Outcome
Abandoned
Customer Account Data Engine
Customer Account Data Engine
Started
2000
Terminated
2009
System name
Customer Account Data Engine
Type of system
System for handling tax records and processing tax returns, replacement for the Individual Master File and others
Country or region
United States
Type of purchaser
Internal Revenue Service
Problems
Low user adoption, performance issues, scope creep, never replaced IMF and other mainframe software, some dating back to the Kennedy Administration
Cost (expected)
~US$500 million
Outsourced or in-house?
Outsourced to IBM, Northrop Grumman and others
Outcome
Abandoned, intended to be replaced by CADE 2
NHS Connecting for Health
NHS Connecting for Health
Started
2002
Terminated
2011
System name
NHS Connecting for Health
Type of system
Electronic care records
Country or region
United Kingdom
Type of purchaser
Central government
Problems
Beset by delays and ballooning costs, and the software part of it was never finished. The government was also criticised for not demonstrating value for money. Although the contracts were drafted to ensure that the contractors would be forced to bear a significant portion of the cost of the project going wrong if it did go wrong, in reality this did not always happen. The NPfIT was described by Members of Parliament as one of the "worst and most expensive contracting fiascos" ever.
Cost (expected)
£12bn (£2.3bn)
Outsourced or in-house?
Outsourced
Outcome
Discontinued, but some parts continued
Expeditionary Combat Support System
Expeditionary Combat Support System
Started
2005
Terminated
2012
System name
Expeditionary Combat Support System
Type of system
Military Enterprise Resource Planning
Country or region
United States
Type of purchaser
Air force
Problems
No significant capabilities ready on time; would have cost $1.1bn more just to get to 1/4 of the original scope.
Cost (expected)
$1.1bn
Outsourced or in-house?
Outsourced – including requirements
Outcome
Cancelled
Polsag [da]
Polsag [da]
Started
2007
Terminated
2012
System name
Polsag [da]
Type of system
Police case management
Country or region
Denmark
Type of purchaser
Police
Problems
Did not work properly, technical problems with contractor.
Cost (expected)
DKK 500m ($70m)
Outsourced or in-house?
Outsourced
Outcome
Cancelled
e-Borders
e-Borders
Started
2007
Terminated
2014
System name
e-Borders
Type of system
Advanced passenger information programme
Country or region
United Kingdom
Type of purchaser
UK Border Agency
Problems
A series of delays.
Cost (expected)
over £412m (£742m)
Outsourced or in-house?
Outsourced
Outcome
Cancelled
Försäkringskassan SAP
Försäkringskassan SAP
Started
2007
Terminated
2010
System name
Försäkringskassan SAP
Type of system
Dental health service system
Country or region
Sweden
Type of purchaser
Social Insurance Agency
Problems
Not fit for purpose, multiple delays, cost overrun.
Cost (expected)
SEK 10bn ($1.18bn)
Outsourced or in-house?
Outsourced, then insourced
Outcome
Cancelled
Digital Media Initiative
Digital Media Initiative
Started
2008
Terminated
2013
System name
Digital Media Initiative
Type of system
Digital production, media asset management
Country or region
United Kingdom
Type of purchaser
Public service broadcaster
Problems
By 2013, the project was judged to be obsolete (as much cheaper commercial off the shelf alternatives by then existed) and was scrapped by BBC management. The Director-General of the BBC said it had been a huge waste of money.
Cost (expected)
more than £98m (£81.7m)
Outsourced or in-house?
Outsourced, then insourced, then outsourced again
Outcome
Cancelled
The Surrey Integrated Reporting Enterprise Network (SIREN)
The Surrey Integrated Reporting Enterprise Network (SIREN)
Started
2009
Terminated
2013
System name
The Surrey Integrated Reporting Enterprise Network (SIREN)
Type of system
Crime & criminal intelligence logging system
Country or region
United Kingdom (Surrey)
Type of purchaser
Police Force
Problems
Not fit for purpose
Cost (expected)
£14.8m
Outsourced or in-house?
Outsourced
Outcome
Scrapped
Pust Siebel
Pust Siebel
Started
2011
Terminated
2014
System name
Pust Siebel
Type of system
Police case management
Country or region
Sweden
Type of purchaser
Police
Problems
Poor functioning, inefficient in work environments.
Cost (expected)
SEK 300m ($35m)
Outsourced or in-house?
Outsourced
Outcome
Scrapped
Cover Oregon
Cover Oregon
Started
2012
Terminated
2014
System name
Cover Oregon
Type of system
Healthcare exchange website
Country or region
United States
Type of purchaser
State government
Problems
Site was never able to accept online enrollments, so users were instructed to mail in paper enrollments instead.
Cost (expected)
approx $200m
Outsourced or in-house?
Outsourced
Outcome
Cancelled, then client and supplier both sued each other
Distributed Ledger Technology (generic name)
Distributed Ledger Technology (generic name)
Started
2017
Terminated
2023
System name
Distributed Ledger Technology (generic name)
Type of system
Electronic trading platform
Country or region
Australia
Type of purchaser
Australian Stock Exchange
Problems
System was too complex and only 60% completed
Cost (expected)
$AU 170m expended
Outsourced or in-house?
Outsourced
Outcome
Cancelled
| Started | Terminated | System name | Type of system | Country or region | Type of purchaser | Problems | Cost (expected) | Outsourced or in-house? | Outcome |
| 1980s | 1993 | TAURUS | Electronic trading platform | United Kingdom (London) | Stock exchange | Scope creep, cost overrun. The project was never completed. | £75m | ? | Cancelled |
| 1982 | 1994 | FAA Advanced Automation System | Air Traffic Control | United States | Federal Aviation Administration | Cost overruns, underestimation of ATC complexity, delays, non-incremental change. existing system. | $3–6b | ? | Scrapped |
| 1984 | 1990 | RISP | Integrated computer services | United Kingdom (Wessex) | Wessex Health Authority | Scope creep, cost overrun. The project was never completed. | £63m (£29m) | ? | Cancelled |
| 1994 | 1999 | INCIS | Crime information | New Zealand | New Zealand Police | Frequently changing development staff, hardware, software and scope. | approx NZD$110m | Outsourced to IBM NZ | Cancelled, then hardware partially reused |
| 1997 | 2000 | Bolit | Customer service, finance and administration system | Sweden | Patent and Registration Office | Too complicated, bad functioning, cost overrun. The project was after completion never used, the agency still today does not have a working IT system. [as of?] | SEK 300m ($35m) | Outsourced | Scrapped |
| 1999 | 2006 | CSIO Portal | Common technological platform for brokers and insurers to improve workflow efficiency | Canada | Centre for Study of Insurance Operations | Low user adoption, conflict between insurers, new technology, lack of funding | ~$15 million CAD .mw- .mw- .mw- body:not(.skin-timeless):not(.skin-minerva) id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw- .mw- .mw- .mw- } }"CSIO portal abandoned due to lack of insurer support and availability of other solutions". | Outsourced to IBM"Reconfiguring CSIO". | Abandoned |
| 2000 | 2009 | Customer Account Data Engine | System for handling tax records and processing tax returns, replacement for the Individual Master File and others | United States | Internal Revenue Service | Low user adoption, performance issues, scope creep, never replaced IMF and other mainframe software, some dating back to the Kennedy Administration | ~US$500 million | Outsourced to IBM, Northrop Grumman and others | Abandoned, intended to be replaced by CADE 2 |
| 2002 | 2011 | NHS Connecting for Health | Electronic care records | United Kingdom | Central government | Beset by delays and ballooning costs, and the software part of it was never finished. The government was also criticised for not demonstrating value for money. Although the contracts were drafted to ensure that the contractors would be forced to bear a significant portion of the cost of the project going wrong if it did go wrong, in reality this did not always happen. The NPfIT was described by Members of Parliament as one of the "worst and most expensive contracting fiascos" ever. | £12bn (£2.3bn) | Outsourced | Discontinued, but some parts continued |
| 2005 | 2012 | Expeditionary Combat Support System | Military Enterprise Resource Planning | United States | Air force | No significant capabilities ready on time; would have cost $1.1bn more just to get to 1/4 of the original scope. | $1.1bn | Outsourced – including requirements | Cancelled |
| 2007 | 2012 | Polsag [da] | Police case management | Denmark | Police | Did not work properly, technical problems with contractor. | DKK 500m ($70m) | Outsourced | Cancelled |
| 2007 | 2014 | e-Borders | Advanced passenger information programme | United Kingdom | UK Border Agency | A series of delays. | over £412m (£742m) | Outsourced | Cancelled |
| 2007 | 2010 | Försäkringskassan SAP | Dental health service system | Sweden | Social Insurance Agency | Not fit for purpose, multiple delays, cost overrun. | SEK 10bn ($1.18bn) | Outsourced, then insourced | Cancelled |
| 2008 | 2013 | Digital Media Initiative | Digital production, media asset management | United Kingdom | Public service broadcaster | By 2013, the project was judged to be obsolete (as much cheaper commercial off the shelf alternatives by then existed) and was scrapped by BBC management. The Director-General of the BBC said it had been a huge waste of money. | more than £98m (£81.7m) | Outsourced, then insourced, then outsourced again | Cancelled |
| 2009 | 2013 | The Surrey Integrated Reporting Enterprise Network (SIREN) | Crime & criminal intelligence logging system | United Kingdom (Surrey) | Police Force | Not fit for purpose | £14.8m | Outsourced | Scrapped |
| 2011 | 2014 | Pust Siebel | Police case management | Sweden | Police | Poor functioning, inefficient in work environments. | SEK 300m ($35m) | Outsourced | Scrapped |
| 2012 | 2014 | Cover Oregon | Healthcare exchange website | United States | State government | Site was never able to accept online enrollments, so users were instructed to mail in paper enrollments instead. | approx $200m | Outsourced | Cancelled, then client and supplier both sued each other |
| 2017 | 2023 | Distributed Ledger Technology (generic name) | Electronic trading platform | Australia | Australian Stock Exchange | System was too complex and only 60% completed | $AU 170m expended | Outsourced | Cancelled |
· Temporary issues and budget overruns
LASCAD
LASCAD
Started
1992
System name
LASCAD
Type of system
Computer-aided dispatch for emergency ambulances
Country or region
United Kingdom (London)
Type of purchaser
Central government
Problems
Ambulance delays and other problems were caused by the introduction of the system. More than 30 people may have died as a result, making it the largest computer-related disaster until the downing of Boeing 737 MAX planes in 2019. The Chief of the London Ambulance Service resigned as a result of the problems and the adverse publicity.
Cost (expected)
£1.5m
Outsourced or in-house?
Outsourced
Smart Systems for Health / eHealth Ontario
Smart Systems for Health / eHealth Ontario
Started
2002
System name
Smart Systems for Health / eHealth Ontario
Type of system
Electronic health record
Country or region
Ontario, Canada
Type of purchaser
Provincial government
Problems
eHealth Ontario is a group of projects that replaced a previous failed project, Smart Systems for Health, which "spent $650 million but failed to produce anything of lasting value." However, in 2009 the CEO of the eHealth Ontario agency resigned, followed by the government minister responsible for overseeing the agency, after a scandal over excessive payments to consultants. In the next audit in 2016, the Auditor General of Ontario noted that 14 years after Smart Systems for Health was started, not all of the eHealth projects were complete, and it was impossible to even determine if they were overbudget because the government had never originally put a budget on them.
Cost (expected)
Can$8bn (unknown)
Outsourced or in-house?
In-house, but with heavy use of consultants
HealthCare.gov
HealthCare.gov
Started
2013
System name
HealthCare.gov
Type of system
Healthcare exchange website
Country or region
United States
Type of purchaser
Federal government
Problems
By some estimates, only 1% of people managed to successfully enroll with the site in its first week of operation. On October 20, 2013, President Barack Obama remarked, "There's no sugar coating: the website has been too slow, people have been getting stuck during the application process and I think it's fair to say that nobody's more frustrated by that than I am."
Cost (expected)
$1.5bn ($93.7m)
Outsourced or in-house?
Outsourced
Queensland Health Payroll System
Queensland Health Payroll System
Started
2013
System name
Queensland Health Payroll System
Type of system
Payroll system
Country or region
Australia
Type of purchaser
State government
Problems
The Queensland Health Payroll System was launched in 2010 in what could be considered one of the most spectacularly over budget projects in Australian history, coming in at over 200 times the original budget. In spite of promises that the new system would be fully automated, the new system required a considerable amount of manual operation.
Cost (expected)
$AUD 1.2bn ($6m)
Outsourced or in-house?
Outsourced
| Started | System name | Type of system | Country or region | Type of purchaser | Problems | Cost (expected) | Outsourced or in-house? |
| 1992 | LASCAD | Computer-aided dispatch for emergency ambulances | United Kingdom (London) | Central government | Ambulance delays and other problems were caused by the introduction of the system. More than 30 people may have died as a result, making it the largest computer-related disaster until the downing of Boeing 737 MAX planes in 2019. The Chief of the London Ambulance Service resigned as a result of the problems and the adverse publicity. | £1.5m | Outsourced |
| 2002 | Smart Systems for Health / eHealth Ontario | Electronic health record | Ontario, Canada | Provincial government | eHealth Ontario is a group of projects that replaced a previous failed project, Smart Systems for Health, which "spent $650 million but failed to produce anything of lasting value." However, in 2009 the CEO of the eHealth Ontario agency resigned, followed by the government minister responsible for overseeing the agency, after a scandal over excessive payments to consultants. In the next audit in 2016, the Auditor General of Ontario noted that 14 years after Smart Systems for Health was started, not all of the eHealth projects were complete, and it was impossible to even determine if they were overbudget because the government had never originally put a budget on them. | Can$8bn (unknown) | In-house, but with heavy use of consultants |
| 2013 | HealthCare.gov | Healthcare exchange website | United States | Federal government | By some estimates, only 1% of people managed to successfully enroll with the site in its first week of operation. On October 20, 2013, President Barack Obama remarked, "There's no sugar coating: the website has been too slow, people have been getting stuck during the application process and I think it's fair to say that nobody's more frustrated by that than I am." | $1.5bn ($93.7m) | Outsourced |
| 2013 | Queensland Health Payroll System | Payroll system | Australia | State government | The Queensland Health Payroll System was launched in 2010 in what could be considered one of the most spectacularly over budget projects in Australian history, coming in at over 200 times the original budget. In spite of promises that the new system would be fully automated, the new system required a considerable amount of manual operation. | $AUD 1.2bn ($6m) | Outsourced |
· Projects with ongoing problems
Canada.ca
Canada.ca
Started
2013
System name
Canada.ca
Type of system
Government website portal
Country or region
Canada
Type of purchaser
Central government
Problems
Original plan was to consolidate 1,500 Canadian government websites into a single portal on a single platform. In over three years, only 10,000 webpages of a total 17 million have successfully been migrated.
Cost (expected)
$9.4 million + $28 million (ongoing)
Outsourced or in-house?
Outsourced platform and proprietary software
PRIO
PRIO
Started
2007
System name
PRIO
Type of system
Logistic and financial system
Country or region
Sweden
Type of purchaser
Armed Forces
Problems
Parts of the system was put into use in 2009, with reports of big usability issues following. In 2012 troubles with supply of spare parts was reported, causing multiple Gripen fighter jets to be put out of service. The air force was operating at a 70% capacity, another area was reported to operate at a 3% capacity with half of the staff not able to work at all. It would take up to a year to restore capacity. At this point the cost to scrap the project and develop a new one was estimated to be SEK 11bn ($1.3bn). Not seen as an alternative, the development continued and the original budget of SEK 2.4bn was increased to 4bn. In 2015 the project was still on its way to be fully implemented.
Cost (expected)
SEK 4bn ($470m) (ongoing)
Outsourced or in-house?
Technical aspects outsourced
Universal Credit
Universal Credit
Started
2013
System name
Universal Credit
Type of system
Welfare payments system consolidation
Country or region
United Kingdom
Type of purchaser
Central government
Problems
The schedule has slipped, with the final delivery date now expected to be 2021, although the system is gradually being introduced. In 2013, only one of four planned pilot sites went live on the originally scheduled date, and the pilot was restricted to extremely simple cases.
Cost (expected)
£12.8bn (estimated) (£2.2bn)
Outsourced or in-house?
Outsourced
Standard Business Reporting (Australian Taxation Office)
Standard Business Reporting (Australian Taxation Office)
Started
2010
System name
Standard Business Reporting (Australian Taxation Office)
Type of system
Electronic Reporting to Government
Country or region
Australia
Type of purchaser
Statutory authority
Problems
6 years after program started in 2010, approximately $800m to $1bn has been spent in total. A significant portion of this spend was composed of contracting fees to IBM and Fujitsu. As of early 2016, business take up of electronic reporting was 2-3%. Program has also suffered from significant scope creep and confused objectives. It is likely that choice of XBRL as the reporting format is the main driver behind low take-up (due to its obscurity and high implementation cost relative to other technical standards).
Cost (expected)
~$1bn to date (ongoing)
Outsourced or in-house?
Technical aspects outsourced
| Started | System name | Type of system | Country or region | Type of purchaser | Problems | Cost (expected) | Outsourced or in-house? |
| 2013 | Canada.ca | Government website portal | Canada | Central government | Original plan was to consolidate 1,500 Canadian government websites into a single portal on a single platform. In over three years, only 10,000 webpages of a total 17 million have successfully been migrated. | million + $28 million (ongoing) | Outsourced platform and proprietary software |
| 2007 | PRIO | Logistic and financial system | Sweden | Armed Forces | Parts of the system was put into use in 2009, with reports of big usability issues following. In 2012 troubles with supply of spare parts was reported, causing multiple Gripen fighter jets to be put out of service. The air force was operating at a 70% capacity, another area was reported to operate at a 3% capacity with half of the staff not able to work at all. It would take up to a year to restore capacity. At this point the cost to scrap the project and develop a new one was estimated to be SEK 11bn ($1.3bn). Not seen as an alternative, the development continued and the original budget of SEK 2.4bn was increased to 4bn. In 2015 the project was still on its way to be fully implemented. | SEK 4bn ($470m) (ongoing) | Technical aspects outsourced |
| 2013 | Universal Credit | Welfare payments system consolidation | United Kingdom | Central government | The schedule has slipped, with the final delivery date now expected to be 2021, although the system is gradually being introduced. In 2013, only one of four planned pilot sites went live on the originally scheduled date, and the pilot was restricted to extremely simple cases. | bn (estimated) (£2.2bn) | Outsourced |
| 2010 | Standard Business Reporting (Australian Taxation Office) | Electronic Reporting to Government | Australia | Statutory authority | 6 years after program started in 2010, approximately $800m to $1bn has been spent in total. A significant portion of this spend was composed of contracting fees to IBM and Fujitsu. As of early 2016, business take up of electronic reporting was 2-3%. Program has also suffered from significant scope creep and confused objectives. It is likely that choice of XBRL as the reporting format is the main driver behind low take-up (due to its obscurity and high implementation cost relative to other technical standards). | ~$1bn to date (ongoing) | Technical aspects outsourced |
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