- Major Studies
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- Valuation Data
According to our outsourcing study, application maintenance is the third most popular IT function to turn over to a third-party service provider, behind application development and application hosting. But it still gets a moderate rating for outsourcing frequency and customer experience.
The outsourcing profile in Figure 1 from our report, Application Maintenance Outsourcing Trends and Customer Experience, shows how outsourcing of the application maintenance function compares with the outsourcing of other IT functions. On frequency, this function is rated as being on the high side of moderate. The ratings are as follows:
The full study examines application maintenance outsourcing adoption and customer experience. We report the percentage of organizations outsourcing application maintenance (frequency), the average amount of work outsourced (level), and the change in the amount of work being outsourced (trend). We also assess the customer experience by showing how many IT organizations successfully lower costs or improve service by outsourcing application maintenance.
Application software maintenance is a critical and central task for every organization. While hardware has become less expensive to procure and maintain, software maintenance consumes an ever-rising portion of the IT budget. As the complexity and cost of applications grow, and as legacy applications require more and more rework, application maintenance and related functions such as application performance management and application lifecycle management pose a key challenge to IT departments grappling with resource limitations.As such, outsourcing these functions needs to be considered as a potential strategy for reducing costs or improving service levels.