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Applications Cost Management

 

This video introduces some of Info-Tech’s new research on controlling application related costs in IT. Applications typically account for about 40% of the enterprise IT budget, therefore it faces a lot of scrutiny from senior management. We talked to IT managers about nine strategies. The four most effective strategies are:

  • Eliminating maintenance on non-core applications.
  • Deploying zero-based budgeting to reduce waste.
  • Introducing greater platform standardization.
  • Triaging delveopment based on effort, since support and maintenance account for between 10 and 20% of effort.

These tactics can be deployed for managing discretionary spend. But when it comes to major budget reductions of over 20%, you only have two options: cut people, or cut applications.

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