Gartner Research

Outsourcing Trends 2013: Application Portfolio and Services Strategies Must Reduce Complexity, Cost and Risk

Published: 25 January 2013

ID: G00239094

Analyst(s): Gilbert van der Heiden , Patrick Sullivan

Summary

Sourcing and application managers must simplify their application strategies to handle more-complex demand, supply and governance. Simplification is a prerequisite to strategies that will optimize user experience while integrating functionality through architecture and portfolio management.

Table Of Contents
  • Impacts

Analysis

  • Key Challenges and Trends in 2012
    • Economic turbulence increased cost pressures and requires simplification of application services, while increasing delivery risks
    • Consumerization and mobility has moved IT toward new, more-flexible architecture and services, affecting current contracts and taxing providers' ability to support new devices
    • Labor arbitrage has not been adequate for service providers to continue achieving cost efficiencies and they are now adopting outcome-based solutions
    • Complexity and burden of existing application portfolios has accelerated application portfolio rationalization and modernization
  • Outlook for 2013

Impacts and Recommendations

  • Consumerization and collaboration built on social networking require application managers to maximize the user experience from applications and provide functionality on any device
  • The desire for business process improvements, improved decision making and competitive benefits lead application managers to adopt big data disciplines and architectural approaches to application development and management
  • With shared accountability for applications, business and IT buyers want shorter projects, which prompts sourcing managers to adopt outcome based solutions — when possible — to accelerate time to value
  • The complexity and burden of existing application portfolios is driving rationalization and modernization of the applications within the portfolio

Recommended Reading

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