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Calculating the true cost
of legacy IT systems
Upgrading or replacing legacy IT systems can be
expensive. But do the benefits of transformation
outweigh the costs maintaining them?
Updating legacy IT systems can be expensive
So can choosing not to
The cost of maintaining legacy IT can mount quickly
Legacy IT Has a Cost
kcom.com
What is the Impact of Doing Nothing?
If you maintain rather than transform or
replace your legacy IT systems, you’re at risk of:
Operational inefficiencies
Demotivated employees
Dissatisfied customers
Holding back innovation
kcom.com
48% of employees are wasting at least 3 hours a day
by working with inefficient systems
For an organisation with 5,000 employees
that equates to 960 man days per year
How much could this be costing your organisation?
The Cost of Inefficiency
kcom.com
Legacy systems often mean inefficient or siloed workflows
This can cause inefficiencies and increase demands on your staff
Do Your Legacy Systems
Allow for Optimal Workflows?
kcom.com
The Cost to Morale
More than half of workers are dissatisfied with workplace technology
Outdated and unwieldy IT systems don’t inspire them making it
more difficult to attract and retain talent
kcom.com
If morale drops, employee turnover increases
Replacing a staff member takes time and costs over £30,000 on average
This cost needs to be factored into your analysis
Can You Afford to Replace
Dissatisfied Employees?
kcom.com
Modern consumers are tech-savvy consumers
66% of the UK population own smartphones and are used to sleek and
intuitive interfaces that provide easy access to the people, information
and services they want
The Cost to Your Image
kcom.com
Older, outdated client-facing interfaces are worlds away from
the apps today’s citizens are currently using
Legacy interfaces will be off-putting and diminish your credibility
Does Your Legacy System
Have a Legacy Interface?
kcom.com
Organisations have never had more access to data and information
Being able to translate this into actionable insight is crucial
to your future success
The Cost of Uninformed Decisions
kcom.com
Newer, cloud-based infrastructure can enable unprecedented
volumes of information to be processed quickly and efficiently
The ability to analyse ‘big data’ can transform decision-making,
improve organisational agility, inform service innovation and
improve customer service
Can your siloed legacy systems provide the same?
Can Your Legacy System Provide Visibility?
kcom.com
Over half of IT budgets are spent on maintenance
With only 33% of IT expenditure allocated to enabling new capabilities
IT leaders need to balance the resources spent on supporting existing
IT operations with projects that deliver genuine innovation
The Cost of Maintenance
kcom.com
Keeping your legacy IT system could cost your organisation:
3 hours of wasted time per day for nearly half your
employees due to inefficiencies
50%+ of IT budgets are spent on maintenance rather
than new projects or innovation, impacting employee
and citizen satisfaction
The True Cost of Legacy IT
kcom.com
IT budgets are stretched
But does it make more sense to fund inefficient, outdated systems?
Or could spending more of your budget on transforming your IT estate and
adopting an agile approach to innovation save money in the long run?
Legacy Systems – Your Choices
kcom.com
Takeaways:
On average more than
half of IT budgets are
spent maintaining
existing IT systems.
Inefficient IT
systems result in at
least of 3 hours of
wasted time per day for
nearly half
your employees.
Inefficient systems and
a poor user experience
impact staff morale and
citizen satisfaction.
kcom.com
More than half of IT budgets are swallowed up
maintaining existing IT systems. Find out how you
can reduce this figure by downloading our guide:
Addressing the challenges of legacy
systems: A guide for IT leaders
Download your FREE eGuide now!
Sources:
http://www.information-age.com/it-management/strategy-and-innovation/123459720/it-sits-heart-inefficiencies-cost-each-uk-business-average-salary
http://www.cio.co.uk/blogs/forrester-cio-blog/employee-satisfaction-technology-expectation-gap/
http://www.hrreview.co.uk/hr-news/recruitment/it-costs-over-30k-to-replace-a-staff-member/50677
http://media.ofcom.org.uk/news/2015/cmr-uk-2015/
http://www.computerweekly.com/news/2240237777/Forrester-IT-maintenance-saps-budget-as-tech-spending-increases
kcom.com

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Calculating the True Cost of Legacy IT Systems

  • 1. Calculating the true cost of legacy IT systems Upgrading or replacing legacy IT systems can be expensive. But do the benefits of transformation outweigh the costs maintaining them?
  • 2. Updating legacy IT systems can be expensive So can choosing not to The cost of maintaining legacy IT can mount quickly Legacy IT Has a Cost kcom.com
  • 3. What is the Impact of Doing Nothing? If you maintain rather than transform or replace your legacy IT systems, you’re at risk of: Operational inefficiencies Demotivated employees Dissatisfied customers Holding back innovation kcom.com
  • 4. 48% of employees are wasting at least 3 hours a day by working with inefficient systems For an organisation with 5,000 employees that equates to 960 man days per year How much could this be costing your organisation? The Cost of Inefficiency kcom.com
  • 5. Legacy systems often mean inefficient or siloed workflows This can cause inefficiencies and increase demands on your staff Do Your Legacy Systems Allow for Optimal Workflows? kcom.com
  • 6. The Cost to Morale More than half of workers are dissatisfied with workplace technology Outdated and unwieldy IT systems don’t inspire them making it more difficult to attract and retain talent kcom.com
  • 7. If morale drops, employee turnover increases Replacing a staff member takes time and costs over £30,000 on average This cost needs to be factored into your analysis Can You Afford to Replace Dissatisfied Employees? kcom.com
  • 8. Modern consumers are tech-savvy consumers 66% of the UK population own smartphones and are used to sleek and intuitive interfaces that provide easy access to the people, information and services they want The Cost to Your Image kcom.com
  • 9. Older, outdated client-facing interfaces are worlds away from the apps today’s citizens are currently using Legacy interfaces will be off-putting and diminish your credibility Does Your Legacy System Have a Legacy Interface? kcom.com
  • 10. Organisations have never had more access to data and information Being able to translate this into actionable insight is crucial to your future success The Cost of Uninformed Decisions kcom.com
  • 11. Newer, cloud-based infrastructure can enable unprecedented volumes of information to be processed quickly and efficiently The ability to analyse ‘big data’ can transform decision-making, improve organisational agility, inform service innovation and improve customer service Can your siloed legacy systems provide the same? Can Your Legacy System Provide Visibility? kcom.com
  • 12. Over half of IT budgets are spent on maintenance With only 33% of IT expenditure allocated to enabling new capabilities IT leaders need to balance the resources spent on supporting existing IT operations with projects that deliver genuine innovation The Cost of Maintenance kcom.com
  • 13. Keeping your legacy IT system could cost your organisation: 3 hours of wasted time per day for nearly half your employees due to inefficiencies 50%+ of IT budgets are spent on maintenance rather than new projects or innovation, impacting employee and citizen satisfaction The True Cost of Legacy IT kcom.com
  • 14. IT budgets are stretched But does it make more sense to fund inefficient, outdated systems? Or could spending more of your budget on transforming your IT estate and adopting an agile approach to innovation save money in the long run? Legacy Systems – Your Choices kcom.com
  • 15. Takeaways: On average more than half of IT budgets are spent maintaining existing IT systems. Inefficient IT systems result in at least of 3 hours of wasted time per day for nearly half your employees. Inefficient systems and a poor user experience impact staff morale and citizen satisfaction. kcom.com
  • 16. More than half of IT budgets are swallowed up maintaining existing IT systems. Find out how you can reduce this figure by downloading our guide: Addressing the challenges of legacy systems: A guide for IT leaders Download your FREE eGuide now! Sources: http://www.information-age.com/it-management/strategy-and-innovation/123459720/it-sits-heart-inefficiencies-cost-each-uk-business-average-salary http://www.cio.co.uk/blogs/forrester-cio-blog/employee-satisfaction-technology-expectation-gap/ http://www.hrreview.co.uk/hr-news/recruitment/it-costs-over-30k-to-replace-a-staff-member/50677 http://media.ofcom.org.uk/news/2015/cmr-uk-2015/ http://www.computerweekly.com/news/2240237777/Forrester-IT-maintenance-saps-budget-as-tech-spending-increases kcom.com