Tangled web of IT applications stunts digital transformation

NEW DELHI, INDIA: 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 a third (34 percent) to nearly half (48 percent). Just 37 percent believe the majority of their applications are mission-critical.

Nearly three quarters (73 percent) believe that at least one-fifth of their current applications share similar functionality and should be consolidated, and 57 percent believe that at least a fifth of their applications 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 that 76 percent believe rationalization is important to realizing their company's objectives.

"On the surface, a badly organized, overloaded and out-dated 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, CTO Application Services Continental Europe at Capgemini.

"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 company."

The study also contains evidence that, while Western organizations are creaking under the strain of outdated, un-used legacy applications, developing markets are benefiting from their relatively fresh, young IT landscape.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.