Applications Portfolio to
Achieve High Performance
Hello and welcome to the Accenture
podcast “Optimizing your applications
portfolio to achieve high performance.”
This third installment of a 4-part series
looks at how companies can both cut
costs and improve business results by
optimizing their application portfolio.
Our experience shows that companies
can achieve savings and business
results when they do two things.
• First, industrialize applications and
• Second, optimize applications.
Companies that optimize will have
a streamlined IT environment that
creates business value. Outsourcing
can help companies optimize quickly
and at lower risk.
Many companies waste time and
money on complex and incompatible
applications. A recent independent
global survey of more than 44 CIOs
found they believe are winning the
battle on cost, but losing the war on
performance. For example, one CIO
estimated that IT departments spend
up to 85 percent of their time fixing
system problems instead of managing
technology to advance the business
mission of the larger organization.
In today’s challenging market
conditions, companies can’t afford
that. Companies on the journey to high
performance simplify their applications
portfolios and align IT with business
How can you do this?
First, look at where you are. Gather
data and analyze your portfolio
strategy and current situation.
Second, identify opportunities for
improvement. Develop a clear vision
of what you want your Applications
portfolio to be, and see how far you
have to go. Third, draw a roadmap
to the future and follow it. That’s
all there is to it. Easy to say, but
sometimes hard for companies to do
That’s because a company’s legacy
IT applications often represent the
codified knowledge, expertise and
traditions and habits that have helped
the company succeed in the past.
As organizations grow, they apply
fixes, patches, upgrades and other
enhancements to those applications.
Eventually, the IT applications portfolio
looks like the Gordian knot. When
Alexander the Great saw the original
Gordian knot, he didn’t waste time
trying to untie it. Instead, he took out
his sword and cut clean through it.
Outsourcing can be the sword that
lets you cut the Gordian knot of an
inefficient, ineffective applications
Outsourcing offers fast access to the
skills and assets necessary to optimize
your applications portfolio. Cost
savings from outsourcing can even
make the optimization self-funding.
Accenture believes that application
outsourcing and optimization must do
1. Achieve sustainable improvements.
We have seen outsourcing services
that have even led to new industry
standards and capabilities.
2. Cut cost, risk and complexity.
A leading aerospace company
that worked with an outsourcing
provider cut long-term IT costs
by 30 percent and eliminated 80
percent of the legacy applications.
Fewer applications mean less risk
and more control.
3. Continuously innovate. Optimization
means more innovation bang for
the IT investment buck, because
IT executives can invest where
the return is great instead of
pouring resources into low-value
Application outsourcing clients have
reaped real benefits from optimizing
their application portfolio. For
• A large global telecommunications
company cut the number of its
applications by three quarters. As a
result, productivity rose and costs
• A government agency slashed
infrastructure costs by 90 percent
and other applications by 40
And a large financial services company
outsourced to better align its business
systems. The new solution was more
reliable and better aligned with the
business. In addition, the company’s
hardware costs fell by almost half and
software costs by almost two-thirds.
Leaders in IT performance know how
important it is to align IT systems
with business and operate them
both efficiently and effectively. They
measure, monitor, change and replace
systems when necessary to support the
Optimization leads to simpler, more
consistent, more up to date and more
productive applications environments.
Outsourcing can make the review
and improvement of IT business
processes easier and more timely.
Some companies use outsourcing to
help drive necessary improvements in
software and management practices.
To sum up:
• Many companies spend too much
time and money fixing problems
with complex and outdated legacy
• Applications portfolio optimization
can cut costs, improve productivity
and align IT with the company
• Outsourcing can be an efficient
and effective way for companies to
optimize their applications portfolio.
• And cost savings achieved
through outsourcing can make the
application optimization selffunding.
Companies that optimize their
applications portfolios through
outsourcing can spend their IT
investment dollars to create value,
instead of just fixing problems.
Applications portfolio optimization and
outsourcing can be an important step
on the journey to achieve high performance.
To learn more, go to Accenture.com
and download the paper Optimizing
Your Applications Portfolio to Achieve
We hope you found the information
in this podcast useful. Thank you for
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with clients to help them become
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