Application support and maintenance is now costing 38 percent of the IT budgets of the Global 2000 companies—an increase of 29 percent, according to a new study.
IT services company HCL recently surveyed 300 CIOs on how much they are spending annually on app support and maintenance. The study found that on average, top firms spend approximately $11.3 million each.
But the study also revealed that much of this spending tends to be technology led rather than business led, and the same firms could save an estimated $6.8 billion collectively through a different approach, noted an article at Computer Weekly.
“For the vast majority of organizations, applications support and maintenance is reactive and focused on firefighting, as opposed to delivering real business value,” according to the survey report. ”Furthermore, for most organizations, ASM continues to be aligned to particular applications as opposed to the business, which is symptomatic of IT working to IT-led rather than business-led KPIs.”
The survey found that 83 percent of CIOs said that traditional ASM processes are inefficient. As a result, they deal with application incidents on a case-by-case basis.
Among the other survey findings:
91 percent said root-cause analysis was taking longer due to the increasingly complex nature of the IT landscape
81 percent said they organized ASM around application silos
81 percent said a small number of applications created a disproportionate number of ASM tickets
67 percent said the ASM function was inflexible in supporting business expansion and does not provide continuous improvement
As to how application support and management is assigned, the survey found that 45 percent of organizations do so internally; 17 percent outsource the process; and 38 percent use a combination of in-house teams and outsourcers.
Read more:
- check out the Computer Weekly article