Optimising the way businesses conduct their application development and maintenance (ADM) strategies could help them slash their operation costs.
A new study by consultancy firm Gartner found organisations might be able to save more than 50 per cent by doing this. It advised IT managers could reduce their expenditure by upgrading legacy applications and changing outdated approaches to staffing.
The report showed ADM accounted for around 34 per cent of a company's computing budget, yet many businesses believe this will continue to grow over the coming years, due to factors such as the rising cost of labour. However, Gartner claimed this was not necessarily the case, as long as firms followed best practices throughout the application and sourcing life cycle.
According to the study, most companies secure their apps tactically, by asking several known service providers to compete for their work in terms of price and daily rates. Only 11 per cent of organisations were said to master source their programs, while many are ineffectively using staff augmentation to manage their ADM strategies.
In order to get the most out of their applications, Gartner recommended businesses should set out best practice contracts, while coming up with a set of key performance indicators to make sure their operations are performing well. In addition, they were advised to implement an analysis of their app portfolio and life cycle to be able to recognise the amount of effort needed to efficiently conduct their strategies.
Gilbert van der Heiden, research vice-president at the consultancy firm, commented: "Whatever model an organisation uses, it should be applied consistently and as objectively as possible, with a focus on measuring and improving productivity and quality. The more comparable the data than an organisation applies to the model, the better it can benchmark the results."
He also stated businesses should perform a proper analysis of their application portfolio to determine the most suitable method of sourcing new apps for each area of their operations. Firms adopting this strategy, he said, would be more likely to witness a reduction in costs and an improvement in effectiveness.
Posted by Jon Aspinell on 22nd April 2014
HR Assistant Contract
City of London
A well respected and established professional membership organisation is seeking an experienced HR Assistant contract...
£21,000 pa pro rata
A well respected and established professional membership organisation is seeking an experienced HR Assistant with gre...
Technical Support Analyst - Heathrow,...
West London, London
£35,000 - £40,000 per annum
We are seeking to hire an experienced Technical Support Analyst to join a highly successful organisation which operat...
An international technology business, working with enterprise retail, supply chain, healthcare and manufacturing busi...
Receptionist & Admin Assistant
A successful UK based business group based in Wembley, are seeking a Receptionist to join their organisation. It will...
A market leading fashion/beauty brand are looking for an experienced Administrator to join their HR team. The success...
Unemployment falls to 4.3 per cent
Unemployment in the UK fell to 4.3 per cent between February to April 2017 and May to July 2017, the lowest since 197...
Keeping candidates engaged during the recruitment process
The relationship between a hiring team and a candidate can be a highly fruitful one, if it has been cultivated proper...
UK companies to publish pay ratios between CEOs and workers
Companies publicly listed in the UK are going to be expected to make public how much their chief executives are paid,...
Are internal candidates a safer bet than external candidates?
When you need to recruit for a vacancy in your firm, you’re faced with two choices: hiring externally or promoting in...
Does it pay to recruit with diversity in mind?
Is diversity a significant aspect of your recruitment strategy? If not, you may be hindering your company’s future pr...
Unemployment falls to 42-year low
Unemployment in the UK has fallen to a 42-year low, according to new figures from the Office for National Statistics ...