Service providers buying bespoke IT applications spend more than expected, with 67 per cent claiming substantial budget overruns, according to a report from Oracle Communications.
The research found bespoke applications to be more expensive to install, with a higher cost of ownership than off-the-shelf products, the latter which delivers under budget 52 per cent of the time.
95 percent of those questioned expect to increase their use of commercial products over the next 18 months rather than use custom software and applications.
“(Service providers) have a real window of opportunity right now to grow revenue through improved customer service and new content offerings. That must be where they focus their attention and their budgets. But first, they must stop over-investing in bespoke applications and migrate their operations to industry-standards based, off-the-shelf applications,” says Dan Ford, vice president of product marketing for Oracle Communications.