
Information Technology (IT) departments face growing pressure to improve IT's business value by accelerating the delivery of new applications and technologies and improving service to users. At the same time, studies find that basic maintenance and support of the existing application portfolio consumes up to 50% to 80% of a typical IT department's resources - posing a serious roadblock to the new initiatives and improved services that can enhance an organisation's competitive position.
In this environment, business leaders continue to be under pressure to reduce costs, or at least to get more out of current budgets. In an age when technology should be nimble and scalable, organisations are being weighed down by application maintenance costs, plus risk and reduced productivity.
Conventional wisdom says IT spend can be reduced across the board. However, these reductions can no longer be done blindly without insight into the business implications. Effective management of these applications can be achieved through a multi-shore approach. Outsourcing the management of established applications is widely recognised as an effective strategy for meeting that challenge. It enables the business to manage better the human and financial resources required to support current applications while positioning it to realize competitive advantage through implementation of enterprise applications and new technologies, and web enablement of business applications.
We, in Changepond, have built an expertise in the Application Maintenance Services (AMS) space. Our engagements are well supported by a Robust Multi-shore Delivery Centre (MDC) model that provides better flexibility, scalability and seamless integration options for our customers.
Changepond AMS Governance principles is used to assess the health of all existing applications at the start of any engagement. It has 5 components (BSRER).
