Growth in the number of PMOs established by the industry over last decade and ever growing body of literature on PMO related research in academia is a clear indication that there is very clear interest of researchers, practitioners and industries across the globe to understand and explore value propositions of PMO. However, there is still a lack of consensus on many critical aspects of PMOs. While there are many PMOs being established, but there are also many being closed and disbanded, which is definitely a matter of concern. In industry environment, a narrow majority of PMOs are well-regarded by their organizations and are seen as contributing business value, many of the others are still struggling to show value for money and some are failing, causing a high mortality rate among PMOs. This paper is the result of a study undertaken to get a deeper understanding of factors that may be causing mortality and failure of PMOs. Post Implementation Reviews of 4-failed & 3-challenged PMOs in IT-Industry were carried out with concerned Project Managers & PMO-staff, using grounded theory research method, with support from the concerned enterprise from IT-Industry.