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How To Reduce Application Support & Maintenance Cost
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How To Reduce Application Support & Maintenance Cost

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The Gartner report contains 5 Alternative Ideas for Applications Management. Learn how to proactively reduce Application support & maintenance cost and impact business performance. …

The Gartner report contains 5 Alternative Ideas for Applications Management. Learn how to proactively reduce Application support & maintenance cost and impact business performance.

With the continual media focus on Social, Mobile, Analytics and Cloud Services, IT executives can be forgiven for forgetting that a high percentage of existing IT spends remains locked in the management of the existing IT stage. If current approaches to managing IT are not transformed, they will continue to remain locked. The only successful strategy deployed by many organization is the squeeze their IT services providers for incremental discounts. A recent Gartner report stated that "on average in 2012, 35% of IT spending was on applications, 55% was on infrastructure and the remaining 10% was on IT management, finance and administration activities. 50% of an application's cost across its lifecycle is support and maintenance. IT leaders are faced with a paradox of shrinking budgets but a business imperative to grow. Given that fewer than 20% of organizations have an application services strategy, ASM suddenly becomes a big budgetary blind spot

HCL has created a radical new approach. It has combines various industry-leading best practices, including LEAN process Management Principles with focused automation and unstained knowledge reuse for the support and maintenance of applications while creating incremental value for business every day with guaranteed cost reductions: Alternate Applications Support and Maintenance or ALT ASM.

In summary ALT ASM seeks to:
1) understand the cause of ‘work’ in Application Support
2) Stop the ‘work’ arising in the first instance
3) Manage the ‘work’ more effectively when it has arisen

ALT ASM engagements are substantially forward-looking. They continuously monitor applications to identify functional and technical re-engineering requirements. Dynamic business demand for enhanced functionality of legacy applications is met through staffing flexibility. Reduced It complexity is attained by identify redundant applications for decommissioning. The application portfolio is kept lean and total cost of ownership (TCO) is kept low.

More importantly, ALT ASM includes the monitoring of both IT key performance indicators and business process KPIs. Using business process and application visibility tools and process watch dashboards, ALT ASM is able to align IT systems to business processes. ALT ASM propagates alternative thinking of proactively reducing incidents and putting business process first.

Published in: Technology, Business

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  • 1. 1 Copyright © 2014 HCL Technologies Limited | www.hcltech.com Gartner report : 5 Alternative Ideas for Applications Management HOW TO REDUCE APPLICATIONS SUPPORT & MAINTENANCE (ASM) COST BY ~30% HCL’s Alternative in Application Support & Maintenance
  • 2. 2 Copyright © 2014 HCL Technologies Limited | www.hcltech.com An ALTernative is required in ASM. An ALTernative which challenges the status quo!!! Alternative ASMTraditional ASM – Industry Practice Limited ability to support a dynamically changing business demand Ticket resolution focused Non consultative approach to transformation Focus on “Keeping the lights on” Limited visibility in service delivery Reduced risk with a flexible engagement Proactive Workload Reduction Proactively Impacting IT Agility Focus on Business Advantage Transparent Engagement Gartner report on Slide 4
  • 3. 3 Copyright © 2014 HCL Technologies Limited | www.hcltech.com ALT ASM™: Key Deliverables & Differentiators Business Process First, Technology Second Incidence Elimination (Level 1.5 at a significantly higher FCR & automation) Business Process KPI & IT SLA management Continuous value generation as a sustainable process Application evolution / lifecycle refresh management Gartner report on next Slide
  • 4. 4 Copyright © 2014 HCL Technologies Limited | www.hcltech.com 5 Ideas For The Future Of Application Management Application Support and Maintenance (ASM) has arrived at a crossroad. On one hand, shrinking IT budgets CIOs and IT leaders are being forced to find means to dramatically reduce IT spends on application support. On the other hand, CIOs and IT leaders are questioning ASM’s relevance in modern times: 1. Why am I paying the same for application support each year? 2. Why are the incidents growing each year with increasing complexity of the IT environment? 3. Why are IT vendors not innovating in my biggest spending area? 4. Why can't this spend create new value for my business users? CLICK TO DOWNLOAD GARTNER REPORT
  • 5. 5 Copyright © 2014 HCL Technologies Limited | www.hcltech.com

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