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Portfolio Rationalization: The New Hub of Application Outsourcing ServicesProduct Type: Market Research ReportPublished by: IDC Published: April 2005 Product Code: R104-19223 Description
This IDC study evaluates the evolving IT service commonly referred to as application portfolio rationalization. Though vendors have for years offered many discrete elements of this service, only recently have some started to evolve it into a formalized service offering with standardized methodologies and metrics. Though rationalization services in their most basic form involve little more than eliminating old and redundant applications, more advanced services can serve as the hub for a range of transformational and outsourcing offerings. "More than merely another service designed to help customers reduce the cost of application maintenance, application portfolio rationalization is well-positioned to act as the hub for a variety of services, including application management, IT outsourcing, and legacy modernization," said Barry Mason, senior analyst, Application Outsourcing and Offshore Services. "Service providers that wish to escape the trap of price pressure and offshore commoditization must utilize portfolio rationalization as the trigger point for a variety of other transformational and outsourcing services." Table of Contents
Table of ContentsIDC Opinion In This Study Situation Overview Why Rationalization Services Are Critical to the Application Outsourcing Industry Figure: Proportion of IT Spending on New Versus Current Initiatives The Next Evolution of the Application Outsourcing Market Rationalization Bridging the Gap Between the Old and the New Figure: The Rationalization Life Cycle The Software Option Vendor Differentiation, or Lack Thereof? Figure: CSC's Application Performance Effectiveness Review Portfolio Assessment Model Table: CSC APER Customer Examples Future Outlook Rationalization as Means for Transformation Rationalization Without Major Transformation Rationalization of Technology Architecture Rationalization with Process Alignment Figure: Need for Applications to Better Fit Business Processes Rather than Adapt Processes to the Applications The ROI from Rationalization-Led Transformation Figure: Degree Application Portfolio Transformation Impacts Potential ROI Is Rationalization an Application Outsourcing Services Killer? Transformation as Savior for Postrationalization Outsourcing Essential Guidance Increasing Wallet Share: Rationalization as Services Driver Figure: Rationalization as a Driver for Application and IS Outsourcing Vendor Action Items The Offshore Opportunity Hosting: Taking Rationalization to the Next Level Transforming to Service Oriented Architecture Triggers for Rationalization Services Event Scenarios Customer Scenarios Figure: Application Outsourcing as Trigger for Rationalization Figure: IS Outsourcing as Rationalization Trigger Figure: Need for Better Visibility into Connection Between Business Applications and Underlying IT Infrastructure Costs Learn More Application Portfolio Rationalization Services Definition Consulting Phase Execution Phase Outsourcing Phase Ongoing Portfolio Management Related Research Synopsis |
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