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

Summary

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

Introduction

Analysis

  • 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

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.