This innovative approach, with minimal up-front expenditure is tailored to give clients complete control over the cost and scope of their application legacy without wholesale change or compromising the existing investment. It is intended to go beyond maintenance and operational cost reduction and improve business agility.
As enterprises pursue their expansion strategies or adopt newer, innovative business models they often have to juggle escalating IT costs and IT systems that are neither scalable nor adaptable. As Western organizations typically spend up to 75% of their IT budget on “keeping the lights on” – doing nothing is not an option.
According to Gartner Inc., “A typical enterprise’s application portfolio spending grows at a compound annual growth rate of between 4% and 7%. During a 15-year life span, the average go-live cost hovers at approximately 8% of the lifetime total cost of ownership, leaving 92% of the full cost of operation to sustain and maintain function — often without clear responsibility or accountability for that funding.”1
Capgemini’s agile legacy modernization concept replaces the old “one-shot modernize and pay” approach with a “modernize to improve” non-stop service at a predictable cost avoiding major up-front investment and leveraging existing intellectual investment. The service is incremental and iterative, fronted with results-oriented WARP1 methodology (Wide-angle Application Rationalization Program). WARP1 takes a bold, “hypothesis-driven” approach, combining hard fact-finding with deep business insight and sensitivity, to the change management aspects and provides an actionable plan and business case in only 4-8 weeks’ time.
IBM provides the comprehensive set of tools that can be used to automate and assist the modernization of applications, by analyzing the complexity of the code base, and unveiling hidden logic and challenges. The solution can leverage clients’ existing investment in IBM but can also work with other technologies.
Capgemini’s service is backed by its Agile Legacy Lifecycle Centers of Excellence located in the UK and India, with further centers in the Netherlands and the United States due to be set up imminently. The new service is part of Capgemini’s global Application Lifecycle Services capability, to help clients manage their entire applications lifecycle from development to maintenance, including testing, implementation and optimization, in recognition of the significant market shift from traditional “build and deploy” models towards unified lifecycle management.
“Capgemini has the breadth, experience and ability to not only define a modernization program but also to deliver against it,” said Harish Grama, vice president, IBM Rational Product Development, Delivery and Customer Support. “We are delighted to be working with them on this compelling customer offering using award-winning software from IBM Rational.”
Pascal Exertier from Capgemini’s Application Lifecycle Services global service line said: “We believe this global service will provide clients with an innovative framework to deliver increased productivity, flexibility and business impact. IBM has demonstrated their commitment to teaming with us as we have established our modernization centers and facilities. Capitalizing on our global presence and delivery, we are able to offer customers a competitive modernization service.”
VWS, the Dutch Ministry of Health, Welfare and Sport, said: “Capgemini recently helped us with a major migration project of over 500 programs, using the IBM migration tools, which ensured the ability of performing corrective and adaptive maintenance on our financial systems, and implementing the migrated programs in a mainframe production environment. They also set up a new development environment (Rational Business Developer), and tested the migrated programs. VWS was satisfied with the performance on this project.”
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business ExperienceTM. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in 40 countries, Capgemini reported 2010 global revenues of EUR 8.7 billion and employs over 112,000 people worldwide.
More information is available at www.capgemini.com.
Capgemini is an IBM Premier Business Partner. Capgemini is also a gold sponsor at IBM Software Innovate Event in Orlando, Florida, 5-9 June 2011.
1 Gartner Inc., Key Issues for Application Services, 2011Matthew Goldman, Allie Young, February 2011