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Service-oriented and open source software as potential markets for applications management : analysis of the possible added value of Capgemini Outsourcing's Dutch applications management service center

Driezen, W. (2008) Service-oriented and open source software as potential markets for applications management : analysis of the possible added value of Capgemini Outsourcing's Dutch applications management service center.

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Abstract:Management Summary Research problem Providers of applications management services operate in a dynamic environment and need to rethink their strategies on a regular basis. The case organization, Capgemini Outsourcing's Dutch Applications Management Service Center (AMSC), is one such applications management provider that is to re-determine its competitive strategy to adapt it to the latent changes in the applications management market. In response, this research is to answer the following research question: What value can the AMSC add to the changing applications management market? The 2007 edition of the International Conference on Software Maintenance has identified the rise of service-oriented software and open-source software as the critical issues for the software maintenance community, of which applications management providers are industrial representatives. Therefore, this research will investigate, besides the current market and die current added value of the AMSC, the possible added value of the case organization to the new markets for applications management that these two types of software bring about. Current applications management market and the AMSC It is found that in the current applications management market demand is non-distinctive, demanded by clients seeking mostly operational efficiency. Furthermore, it is found that there are many equivalent providers, that there exists a considerable threat of entry by new players, and that there exists a potential threat that clients will have applications management performed in-house again. As this market offers little room for differentiation, the applications management providers compete on prices. [Confidential content was removed] Findings regarding applications management for service-oriented software The analysis of service-oriented software itself shows that, although many benefits are attributed to it, none of those are supported by empirical research findings. Therefore, the benefits of service-oriented software for its users are considered to be uncertain. Providing applications management for service-oriented software is found to require a number of new or different competences of the applications management provider, because service orientation affects the work in a number of ways. The amount and the complexity of applications management work may increase relative to traditional applications management. Furthermore, some aspects of the work itself may be different. Also, the value chain of which the work is part may be more complex. The applications management market for service-oriented software is found to be attractive, because it grows rapidly (about 20% yearly), and because it may serve more strategic needs of clients. [Confidential content was removed] Findings regarding applications management for open-source software Proponents of open-source software claim its superiority over proprietary software. However, open-source software as a market for applications management services is considered to be very limited. On the other hand, providing applications management for open-source software is found to require no to few new competences from the applications management provider, because managing and maintaining open-source software is litde different from traditional applications management. Besides the finding that the applications management market for open-source software is very limited in size, it is also found that it is an unattractive one. This is because its clients mostly seek operational effectiveness and because four of the five forces that form its competitive environment are less favorable than in the traditional applications management market (only rivalry is considered to be equal). Nonetheless, the market is forecasted to grow 5 to 10% yearly. [Confidential content was removed] Conclusions [Confidential content was removed] Recommendations [Confidential content was removed]
Item Type:Essay (Master)
Clients:
Capgemini Outsourcing
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/58102
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