Multiple hidden associated costs related to mainframe outsourcing are causing frustration for 71 percent of CIOs, according to a global CIO survey by Compuware.
The survey on attitudes and experiences with mainframe outsourcing shows that reduction of costs is a major business driver for outsourcing mainframe application development, maintenance and infrastructure.
Sixty-seven percent of respondents said they were dissatisfied with the quality of new applications or services provided by their outsourcer.
The findings from the study show that these hidden costs are due to increases in MIPS (million instructions per second) consumption and higher investments in testing and troubleshooting.
On an average, the MIPS costs are increasing by 21percent year over year, and 40 percent of respondents agreed that consumption is getting out of control.
About 42 percent of those surveyed think their outsourcer could manage their CPU costs better.
"The research shows that there is a growing frustration that outsourcers are failing to meet expectations," said Kris Manery, senior vice president and general manager, Mainframe Solutions Business Unit, Compuware. "Because there is no means to easily transfer application knowledge to the outsourcer--and to verify code quality and performance when it is delivered--application quality suffers, thus undermining any potential savings."
Quality issues in outsourcing
There are many quality issues in the outsourced development of mainframe applications and collectively these are contributing to an increase in the total cost of ownership.
Fifty-seven percent of all respondents said outsourcers don't worry about the efficiency of the applications that they write. Sixty-eight percent of those surveyed said an increase in mobile applications, for things like mobile banking, is driving higher MIPS usage and creating additional costs.
Poor quality of work provided by the outsourcers drove 54 percent of companies to increase investment in performance testing and troubleshooting.
Forty-seven percent of the respondents said the error and bug rate in application code delivered by an outsourcer is higher than with in-house developers.
On average, IT teams spend about 10 days fixing application bugs and performance problems from outsourcers on any given project.
Sixty-seven percent of respondents said they are not always satisfied by the quality of new applications or services provided by their outsourcer.
"Outsourcers and enterprises need to look at how they are working together and implement processes and tools that will lead to better outcomes," added Manery.
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