|[March 05, 2014]
Capgemini: Tangled Web of IT Applications Stunts Digital Transformation
PARIS --(Business Wire)--
A study of over 1,000 CIOs and senior IT decision makers by Capgemini,
one of the world's foremost providers of consulting, technology and
outsourcing services, has revealed that the tangled web of applications
within international organizations is getting more and more complex,
putting strain on the IT department and stunting digital transformation.
According to the study, over the last three years the number of IT
decision makers who believe their business has more applications than it
needs has increased from just over one-third (34 percent) to nearly
one-half (48 percent). Just 37 percent believe the majority of their
applications are mission-critical. Nearly three-quarters (70 percent)
believe at least one-fifth of their company's applications share similar
functionality and could be consolidated, and a further 53 percent
believe one-fifth should be retired or replaced.
This isn't just an IT problem, it's a business problem. The study
revealed that 60 percent of senior IT decision makers believe their
departments' most valuable contribution to the company is introducing
new technologies. Indeed, a significant number have already implemented
Cloud (56 percent), mobility (54 percent), social (41 percent) and Big
Data (34 percent) solutions. However, without a modernized applications
landscape, IT lacks the bandwidth to deliver competitive advantage
through these technologies. Little wonder 76 percent believe
rationalization is important to realizing their company's objectives.
"On the surface, a badly organized, overloaded and outdated
applications landscape sounds like a minor irritation for the IT team,
absorbing bandwidth and wasting money, but ultimately not a problem that
should keep the wider business up at night," comments Ron
Tolido, Senior Vice President, Application Services, at Capgemini (News - Alert).
"But in a world where all facets of an organization are starting to
embrace digital transformation - and are dependent on the quick
deployment of mobile, social, Big Data and Cloud solutions for
competitive advantage - a well-rationalized applications landscape
suddenly becomes a much bigger, strategic imperative for the whole
The study also contains evidence that, while Western organizations are
creaking under the strain of outdated, un-used legacy applications,
developing markets are benefiting from their relatively fresh, young IT
landscape. Where countries like Finland and Norway report below-average
levels of understanding between business and IT (just 64 percent and 69
percent, respectively, believe the relationship is "satisfactory"), an
encouraging 92 percent of respondents in Brazil, India and China report
a satisfactory understanding between the two.
Ron Tolido continues: "There is definitely an argument to be made
that high growth markets are at a significant advantage when it comes to
ensuring the applications landscape lines up with the business' goals
and objectives. This may give them a head start in digital
transformation initiatives and could represent an important competitive
advantage over their Western business rivals."
The findings of Capgemini's 2014 Application Landscape Report are based
on a survey conducted in 12 languages with 1,116 CIOs and top-level IT
decision makers in companies of various sizes from a wide range of
industries. With a global emphasis, the report covers 16 countries, with
73 percent of respondents from developed economies (Australia, Europe,
US) and a further 27 percent from fast-developing countries (Brazil,
In addition, the findings of the report are also derived from the
extensive work done by Capgemini's Wide-angle Application
Rationalization Program (WARP) Center of Excellence. WARP is Capgemini's
proven framework for application rationalization and IT transformation.
The Center of Excellence for WARP specializes in such engagements, and
over the past 4 years, has catered to over 150 clients and analyzed more
than 30,000 applications, thus providing key industry benchmarks for
critical IT metrics.
For more information:
View the full Application
Landscape Report 2014 along with assets including executive summary,
infographic and videos.
With more than 130,000 people in over 40 countries, Capgemini is one of
the world's foremost providers of consulting, technology and outsourcing
services. The Group reported 2013 global revenues of EUR 10.1 billion
(more than $13 billion USD). Together with its clients, Capgemini
creates and delivers business and technology solutions that fit their
needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore®,
its worldwide delivery model. Learn more about us at www.capgemini.com.
Rightshore® is a trademark belonging to
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