In the current economic scenario there is an increased pressure on IT departments to limit costs. Organizations need to simplify their IT application suites to ensure long term cost benefits. It is however, not very easy to find a direct link between applications and the organization wide costs required to run them.

Some of the ways a CIO can identify redundant applications that could be a cause to unproductive expenses, include:

  • Are their applications which are performing the same functions?
  • Are their applications across different locations which do similar things?
  • Are their applications that are built on obsolete technology that require special skill set?

 

While looking at reducing costs and eliminating complexity, some of the things that a CIO needs to look at are include applications which are the oldest in the organization, applications or systems which require support skills that are unique or not easily available in the market and systems which are duplicative. These systems need to be addressed the earliest while working on a cost reduction initiative.

 

Consolidation of applications is one of the best methods to reduce costs. Once duplicative applications are identified the best surviving candidate should be isolated, studied through reverse engineering, possible gaps identified and then interfaces need to be created to fulfill the place for retired applications.

Another option is to reduce the number of legacy applications and if possible, give way to more advanced third party applications which are most cost effective than in-house applications and are built on programming languages compliant with modern technologies and systems.

There are limited methods or tools that are available to benchmark an organizations’ application portfolio but still there is a lot of space for cost reduction by eliminating duplicate applications and replacing legacy systems with newer systems whether built in-house or purchased from the market.