Gartner Research

CIOs Can Save by Using Sourcing and Market Trends to Optimize Application Costs

Published: 05 August 2016

ID: G00303377

Analyst(s): Claudio Da Rold , Kris Doering, Davide Levi, Arup Roy

Summary

Thirty-five percent of IT budget is devoted to application development and support, with costs increasing. CIOs can use application-sizing best practices and external service market trends to optimize application costs and save 3% to 5% per year.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Estimate Increasing Cost Factors, and Conduct an Applications Portfolio Analysis to Prioritize Actions

Case Study

  • Ask Your Sourcing Leaders to (Re)negotiate All FTE-Based Contracts to Include Benchmarked Productivity Measures

Case Study

  • Invest in a Demand Management Capability Focused on Application Services

Case Study

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