(Length: 4 pages)

November 18, 2005

Application Development Cost Is A Poor Indicator Of Future Maintenance Costs

This is the seventh document in the "Modernizing The Practice Of Application Maintenance" series.

by Phil Murphy


Executive Summary (This is a document excerpt)

As IT staff move newly developed applications to the production environment, IT management seeks to assess the incremental effect on the maintenance budget. Despite the likely availability of application development costs as a component of the formula, in truth, development cost has little bearing on the future cost of maintenance. Even in industries with highly evolved manufacturing processes, when the entire manufacturing process is very tightly controlled, it isn't possible to estimate maintenance costs based on the cost to build the product. With a much looser product development process, IT has no hope of using development cost to determine maintenance cost.

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Analyst: Phil Murphy
Technology: Application Development, Application Development Processes & Tools, Application Strategy & Selection, Budgeting & Forecasting, IT Spending & Budgeting, Packaged Applications
Geography: Asia Pacific, Europe, North America