Kris Manery, Compuware: Mainframe Skills Shortages Expose Rising Costs and Increased Business Risks

November 25, 2011

Compuware released the results of an independent research study conducted by Vanson Bourne into mainframe use in the enterprise. Key findings from the international survey indicate that a retiring mainframe workforce is exposing enterprises to rising costs and increased business risks.

In the study of 520 CIOs, 71 percent state they are concerned that the looming mainframe skills shortage will hurt their business. Specifically, CIOs are concerned this will result in increased application risk (58 percent), reduced productivity (58 percent) and more project overruns (53 percent).

"One minute of a mainframe application outage can cost nearly $14,000 in lost revenue for the average enterprise according to this study. The research also confirms that these already high costs — and the associated business risks — are poised to increase because of looming skills shortages," said Kris Manery, Senior Vice President and General Manager, Mainframe Solutions Business Unit, Compuware. "Experienced developers are business-critical assets, which is why nearly half (43 percent) of mainframe operational expenses goes toward their salaries. The loss of expertise as they retire will lead to increased costs as inexperienced developers spend more time getting to grips with their mainframe applications. Unfortunately, this steep learning curve also means that there are more chances for error and ultimately loss of revenue through application outages."

Some 79 percent of CIOs confirm that mainframe application outages pose a significant business risk, yet 78 percent say these applications will remain a key business asset over the next decade. However, while the study identified rising costs resulting from developer shortages, 70 percent of CIOs agree that cost cutting will expose more risks than rewards.

Manery continued: "Businesses must act quickly to address the problem of 'mainframe brain drain' or suffer a cycle of spiraling costs and mainframe outages. The overall challenge for CIOs here is resource management. Savvy CIOs will streamline mainframe investments by improving the productivity of the remaining experienced developers and new entrants, as well as increasing IT efficiency."