Gartner Research

Optimizing Application Development and Maintenance Can Cut Costs by 50% or More

Published: 12 March 2014

ID: G00259905

Analyst(s): Lorenzo Larini, Claudio Da Rold , Gilbert van der Heiden , Nicola Caccavallo, Davide Levi


Application development and maintenance take up 34% of IT budgets. Sourcing managers can develop and implement sourcing strategies, metrics and processes that can help the CIO cut this cost in half by eliminating legacy applications, spaghetti architectures and outdated staffing approaches.

Table Of Contents
  • Key Challenges



  • Perform an Application Portfolio and Life Cycle Activity Analysis to Consolidate ADM Suppliers
  • Use the Right Metrics to Size Application Portfolio and Development Efforts, and Determine the Right ADM Team Size
  • Drive Continuous Optimization of ADM Activities Through Focused Benchmarked Metrics and Contractual KPIs/SLAs
    • Case No. 4: Tier 2 Telecom Provider
    • Case No. 5: Tier 1 Telecom Provider
  • Bottom Line


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