Abstract :
The public sector organizations´ budget allocation for ICT is significantly large. The budgets are usually channeled for planning, procuring and implementing ICT projects to automate public administration systems and processes. Yet project failures occur which adversely affect the citizens who contribute to the annual budgets in the form of taxes. Thus, the objective of this study was to determine the barriers that hinder the successful project implementation of information systems in a public sector organization, specifically, the local authorities. Qualitative method was employed and data were collected through repeated interviews for content and pattern analyses. Since this paper was part of a bigger study, only the economic issues are reported from the four emergent ones. The sub-issues generated after data saturation has been reached include strategic planning, budgeting, timeframe and scheduling, contracts, and external consultants and outsourcing. From the identification of these issues, system administrators would be able to detail indicators of project failures thus ensuring project success and limiting wasteful expenses.