COGNIZANT CONSULTING
Helping organizations engage people and uncover insight from data to shape the products, services and experiences they offer
Learn More

Contact Us

THANKS FOR YOUR INTEREST IN COGNIZANT.

We'll be in touch soon!

x CLOSE

Refer back to this favorites tab during today's session for access to your selections.
Refer back to this favorites tab during today's session for access to your selections.x CLOSE

Perspectives

A Managed Services Approach that Contains IT Costs and Delivers on Business Expectations

2015-12-30


In an era of shrinking IT budgets and rising expectations for ever-increasing business value, traditional IT portfolio approaches must be revised to cope with lofty organizational demands.

Across industries, IT budgets for “run the business” initiatives have declined steadily over the past few years. Yet despite having fewer dollars to spend on activities such as application maintenance and extensions, many senior leaders still expect IT to deliver outcomes that meet if not exceed their strategic business objectives. 

To deliver on these expectations, IT must initiate a more rigorous review of the ROI measurement process and consider embracing a managed services-based approach to managing their portfolios. This approach, in our experience, can simultaneously reduce costs and increase the value delivered to business. 

The Future of IT: Cognizant’s Zero Maintenance Strategy

We believe organizations should adopt a “zero maintenance strategy,” based on the following imperatives: 

  • Reduce non-discretionary spend by eliminating the effort expended to run applications in production while optimizing infrastructure costs by “rightsizing” application needs. 

  • Optimize discretionary spend by accelerating time-to-market while, at the same time, ensuring that the technical and functional value of the application portfolio is increased. 

  • Deliver business outcomes that continuously verify the relevance of installed applications and ensure they are not only “fit for use” but also “fit for purpose.”  

Organizations should manage this value continuum using the “debt framework,” in which various costs that are present in the portfolio are measured and controlled, ensuring the balance between business need and portfolio stability (see Figure 1 for more detail). 

Interactive    

Figure 1

To learn more about how to cap application maintenance costs without impacting business value, read our white paper The Future of IT: A Zero Maintenance Strategy or visit the application maintenance section of our website.

Related Thinking

Save this article to your folders


Save

PERSPECTIVES

A Roadmap to an Infrastructure that...

As businesses become increasingly technology-intensive, organizations...

Save View

Save this article to your folders


Save

PERSPECTIVES

Finding Flexible Delivery Success: Eight...

To thrive in today's swift-changing and unforgiving marketplace,...

Save View

Save this article to your folders


Save

PERSPECTIVES

Creating Elastic Digital Architectures:...

Social, mobile, analytics and cloud technologies — the SMAC Stack — are...

Save View
A Managed Services Approach that Contains IT Costs and Delivers on Business Expectations