Businesses across the UK could benefit from the introduction of a new optimised approach to application development in order to reduce IT spending and maintenance costs.
This is the view of Claudio Da Rold, vice president and distinguished analyst at Gartner, who stated application development and maintenance (ADM) now typically accounts for around one-third of data management budgets for firms and the elimination of legacy applications, architectures and outdated approaches by staff could significant cut expenditure in this area.
“Most organisations tend to assume that the cost of ADM can only grow over time due to rising labour costs and the increasing complexity and number of applications,” she said.
“The ADM unit cost can be significantly optimised over time, provided that best practices across the application and sourcing life cycle – strategy, selection, negotiation and management – are followed.”
At present, Gartner believes that only around 11 per cent of businesses have mastered the practice of sourcing for ADM and therefore there is considerable scope among the majority of firms for savings in this area.
Utilising the right metrics can have a significant impact on ADM costs, while pushing for continuous optimisation of activities through benchmarked metrics and contractual key performance indicators can also be highly beneficial.
This entails the removal of inefficiencies from ADM, as at present, many businesses evaluate the effort and expenditure required to develop new functionality or to maintain existing systems as an afterthought, but this is not the most conducive practice for IT savings.
Gilbert van der Heiden, research vice president at Gartner, added that whatever model a company uses, it should be applied consistently and as objectively as possible, with a focus on measuring and improving productivity and quality.
Contacting several service providers, both internally and externally, can be one of the best ways to drive greater efficiency and reduce costs, as this allows firms to develop a more complete understanding of the exact costs associated with ADM.
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