Gartner Research

Effective Strategies to Deliver Sustainable Cost Optimization in Application Services

Published: 11 August 2016

ID: G00303027

Analyst(s): Stewart Buchanan , Kris Doering

Summary

The relentless pressure for cost optimization of application services is compounded by the added demands of digital, IoT, analytics and smart machine initiatives. Sourcing executives can move to outcome-based contracts, automate and include productivity terms to deliver sustainable results.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Prioritize Cost Optimization Analysis Using a Structured Methodology
  • Move to Fixed-Price Outcome-Based Pricing Models
  • Negotiate Year-Over-Year Cost Reductions Through Efficiency and Automation

Case Study

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