Reducing cost, improving service and delivering value to the business through your applications portfolio is a constant challenge. Our experience suggests that approximately 20-25% of the applications budget is spent on ageing legacy applications and 60-70% on maintenance and support leaving little to respond to the challenges of the business.
Yet there are opportunities to free up money and resources through decommissioning, consolidation and replacement so your application portfolio can support business change.
At Fujitsu our approach to optimising application portfolios – using a combination of Application Value Assessment (AVA) and Application Management and Outsourcing (AM and AO) services- has highlighted the potential for savings in a number of specific areas :
| Area targeted for cost reduction | Potential savings in number of applications |
|---|---|
| Removal of duplicate applications | 15-40% |
| Removal of unsustainable applications in specific business areas | Up to 50% |
| Reduced investment in non-viable applications | 10-15% |
| Replacement of expensive technology base in specific business areas | 20-40% |
| Licensing rationalisation | 5-15% of licences |
Achieving this involves identifying and delivering specific projects that reduce cost and free up resources for supporting the business. In some cases, this may lead to a structured review of your sourcing strategy including outsourcing for specific parts of the portfolio. We aim to reduce costs through outsourcing by up to 50% over a three year period.
Insight into your application portfolio and the identification of possible improvements through AVA is the first step to realising these benefits.
Share this page |
|
|
|
|