Report highlights gaps in IT strategy and governance as outdated initiatives continue to absorb budgets and resources in Irish enterprises.
Large organisations in Ireland are spending on average €667,000 annually on so-called “zombie projects.”
That’s according to a new report from Dublin-headquartered IT consultancy Saros Consulting.
“Zombie projects represent one of the biggest hidden costs for businesses in Ireland”
The findings, published in the company’s CIO Strategy Report 2026, suggest that many businesses continue to allocate significant resources to projects that no longer deliver meaningful value or align with strategic objectives.
It was carried out by Censuswide on behalf of Saros and surveyed 200 IT decision-makers in organisations in Ireland with 250+ employees, exploring their attitudes towards IT strategy, governance and technology investment.
Weakness in IT leadership
The findings suggest that weaknesses in IT strategy and leadership alignment may be contributing to the persistence of zombie projects. Almost one-in-five (18%) 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 (14%) 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. “Yet still, 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 their people on new systems, or the cumbersome processes involved in retiring software. However, over time, these projects consume budget and divert resources away from where they need to be.
“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.”
The research also highlights the importance of strategic planning in technology investment decisions. Almost two-thirds (64%) of IT leaders say their IT strategy helps them to avoid investing in the wrong technologies, while 61% say it supports better decision-making. Despite this, organisations continue to spend significant sums on projects that no longer deliver value or align with business priorities.
“The persistence of zombie projects highlights a wider challenge,” Justin van der Spuy, co-founder and co-CEO of Saros Consulting explained.
“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 who 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.”
Top image: Justin van der Spuy and Ray Armstrong, co-founders and co-CEOs of Saros Consulting
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