IT Portfolio Rationalization

Service Overview
Many organizations, including some fortune 500 companies, have invested more than 50% of their capital in IT activities. Such investments include software or hardware or network items or other IT related devices. The IT investment is made to meet or support the business objectives. It is indispensable to ensure the IT investment is aligned with business objectives. IT is for business, and not Business for IT investments. IT should be considered as a supporting tool. If there is wide gap between IT investment and business objective, there could be wastage of cost, resources and time. According to latest research study, in most of the organizations the IT investment is not fully aligned with objectives of business organization. IT Portfolio Rationalization study deals with identifying and rectifying such misalignments. The outcome could be based on the detailed analysis of application portfolio and project portfolio.

What is IT Portfolio Rationalization?
IT Portfolio Rationalization is a disciplined methodological approach to manage IT investments to meet the investment objectives after tide over risk factors. IT portfolio rationalization management ensures business organization to measure and monitor the IT investments through well defined processes and business solutions framework for better decision making processes as set by corporate governance rules. IT Portfolio Management (ITPM) is a composition of Application Portfolio Management (APM) and Project Portfolio Management (PPM).

Why is ITPR so important for Business?

Business issues

• Need of greater agility to react to changing business environment and to tide over competition
• Need for ever increasing capabilities with new functionalities to achieve time to market
• Exposure to globalization may require compliance with International governance/standards

Application issues:

• No single view of application portfolio
• Highly aged and complex development and deployment environments
• Inefficient, ineffective and non value added business processes
• Lot of legacy systems and silos of legacy applications
• Inflexible systems to accommodate new business requirements
• Difficulty in managing legacy and non fully aligned systems
• Inconsistent and incomplete documentation

Project issues:

• Lesser number of strategic projects
• Too many risky projects
• Unbalanced Project Portfolio
• Not effective utilization of resources across projects

Impact of the above issues

• Larger IT Spending towards maintenance and support costs of application portfolio resulting in decreased Return On Investments (ROI)
• Increased Total Cost of Ownership(TCO) and Decreased customer delight