Optimizing your Applications Portfolio to Achieve High Performance

accenture

Optimizing your Applications Portfolio to Achieve High Performance

Outsourcing

Optimizing your

Applications Portfolio to

Achieve High Performance

Podcast Transcript


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

maintenance 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

needs.

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

alone.

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

portfolio.

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

three things:


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

applications.

Application outsourcing clients have

reaped real benefits from optimizing

their application portfolio. For

example:

• A large global telecommunications

company cut the number of its

applications by three quarters. As a

result, productivity rose and costs

fell.

• A government agency slashed

infrastructure costs by 90 percent

and other applications by 40

percent.

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

business.

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

systems.

Applications portfolio optimization

can cut costs, improve productivity

and align IT with the company

mission.

• 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

High Performance.

We hope you found the information

in this podcast useful. Thank you for

listening.


Copyright © 2009 Accenture

All rights reserved.

Accenture, its logo, and

High Performance Delivered

are trademarks of Accenture.

ACC09-1272

About Accenture

Accenture is a global management

consulting, technology services and

outsourcing company. Combining

unparalleled experience, comprehensive

capabilities across all industries and

business functions, and extensive

research on the world’s most successful

companies, Accenture collaborates

with clients to help them become

high-performance businesses and

governments. With more than 180,000

people serving clients in over 120

countries, the company generated net

revenues of US$23.39 billion for the

fiscal year ended Aug. 31, 2008. Its

home page is www.accenture.com.

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