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EDS Launches IT Cost Reduction Solution for Financial Services Clients

Saturday 22 November 2003 09:52 CET | News

EDS has launched a family of IT Cost Reduction solutions to help financial services firms identify areas of cost reduction and implement programs that create both short-and long-term sustainable cost savings.

These solutions are designed to drive down the cost of running technology operations in four specific areas ? infrastructure, legacy application replacement and re-platforming, application development, and enterprise integration and IT optimization ? while improving timeliness and availability of data for management and customers. Currently, financial services firms can spend as much as 90 percent of their budget on simply maintaining the status quo. When a problem arises, they look to single-point solutions such as add-ons or patches as a quick fix. Unfortunately, this leaves them with an existing IT infrastructure that inherits a variety of problems: - Multiple, disparate systems, some close to 25 years old - Incompatible architectures that are hard to maintain - Expensive and inflexible legacy systems - Incomplete information because data resides in silos. For financial services firms, this puts them at risk of non-compliance with industry standards and customers receive inconsistent and incomplete financial information. - Applications systems built at different times by different groups that operate independently of each other IT Cost Reduction Business Benefits EDS IT Cost Reduction solution provides an integrated program designed to achieve sustainable benefits. In tandem with operational and organization model changes, the solution can achieve the following targets: - Replace existing applications with lower-cost applications, saving 50 to 90 percent; - Reduce application development costs by 30 to 50 percent; - Reduce costs of applications maintenance by 20 to 30 percent; - Reduce interface development and maintenance costs by 40 to 60 percent; - Consolidate servers saving 25-50 percent; - Migrate platforms and convert databases and computer language to a low-cost, open environment reducing costs by 10 to 30 percent; - Outsource IT functions, including data center, networks, applications development, IT infrastructure, desktop/helpdesk/contact centers, business continuity/disaster recovery and utility computing saving 20 to 30 percent; - Implement business process utility computing, saving 10 to 30 percent; - Reduce overall program management costs 10 to 15 percent by implementing best practices and consistent tools, processes and methodologies. The EDS Solution EDS applies a framework to each client?s specific business environment to identify which initiatives need to be adopted by the business and IT function, in which order, and across which time frame, in order to deliver the maximum impact and business results. To identify areas of savings, EDS employs a diagnostic process to analyze specific areas where costs can be reduced. This process can result in either an external or internal transformation, or both. The first possibility, or external transformation, would result in the client outsourcing either their IT or applications development and maintenance. The second outcome, or internal transformation, would result in consulting with the client on how to optimize existing IT functions. This is achieved by looking at the four areas where cost savings can be achieved ? infrastructure, legacy application replacement and re-platforming, application development, and enterprise integration and IT optimization. After prioritizing the needs of these areas against an organization?s business needs, a plan is developed for short and long-term savings. In many cases, savings from the short term can fund the long-term initiatives. With a vast portfolio of offerings in IT outsourcing, business process outsourcing and applications maintenance and development, EDS can recommend the most direct route to overall IT cost savings and provide a migration path to new, more efficient technologies and processes. This frees up valuable time and money to be inves


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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce