Reducing Cost-to-Serve: Application Maintenance Services

Author(s): Refael Keren

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This research note applies the Cost-to-Serve cost-management approach to identify opportunities for controlling expenses in the application maintenance services area. Coverage includes:

  • Guidance on when the application maintenance services area is a strong cost management candidate for the organization.
  • Description of specific cost-reduction measures that can be achieved according to varying time frames.
  • Case studies that provide real-life insight into experiences with these cost-reduction techniques.

Application maintenance services is an area that can offer both short and long-term cost saving opportunities. Short-term gains revolve around the ability to cut back on service levels while maintaining functionality. Long-term targets can be achieved by improving application maintenance practices.

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