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Gartner: Optimizing Application Development and Maintenance Cuts Costs by 50%

The research firm says enterprises need to do a better job sourcing development projects.


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A new report from the researchers at Gartner says many organizations are spending more than they need to on enterprise application development and maintenance (ADM). In fact, the firm believes that optimizing the processes involved can reduce costs by half.

"ADM accounts for 34 percent of IT budgets," Claudio Da Rold, vice president and distinguished analyst at Gartner, said in a statement. "Most organizations tend to assume that the cost of ADM can only grow over time due to rising labor costs and the increasing complexity and number of applications. The ADM unit cost can be significantly optimized over time, provided that best practices across the application and sourcing life cycle — strategy, selection, negotiation and management — are followed."

The report advises practices like an application portfolio and life cycle activity analysis, supplier consolidation, properly sizing projects, a formal vendor evaluation process, best practice contracts, SLAs and productivity and simplification targets.



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