Application Development and Maintenance: Costs and Complexity of Managing Suppliers

Application development and maintenance (ADM) outsourcing has grown rapidly thanks to the substantial benefits derived from labor arbitrage.

In the rush to outsource application development and maintenance, many companies contracted multiple suppliers, an approach that has considerable advantages but that also poses considerable challenges. Reducing the number of suppliers can have substantial financial benefits, with one-time costs reduced by 35 to 40 percent and operational costs by 20 to 25 percent.

In this white paper, Everest Research Institute analyzes the costs and complexity of managing multiple application development and maintenance suppliers, and how buyers can benefit from limiting the number of suppliers in their portfolios.

This whitepaper is published by the Everest Research Institute with support from Accenture.

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