Gartner Research

Cost Optimization and Productivity Strategies in Application Services for Short- and Long-Term Returns

Published: 21 February 2019

ID: G00379407

Analyst(s): Andrew Miljanovski , Jim Longwood , Brett Sparks , Alan Stanley


Pressure to optimize services cost is compounded by the demands of digital initiatives and reinvestment resistance. Sourcing, procurement and vendor management leaders must optimize service contracts and pricing models, leverage automation, and define/refine cloud strategy to offset demands.

Table Of Contents
  • Key Challenges



  • Optimize Contracts
    • Use the Right Pricing Model to Drive Cost Savings in Contracts
  • Build Automation Processes and Incentivize Success
    • Create and Apply an Automation Roadmap
    • Apply Reinvestment Models and Gain-Sharing
  • Rationalize the Application Portfolio

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