Turn Application Portfolio Rationalization Into A Continuous Optimization Capability

Key Takeaway
Enterprises that treat application portfolio rationalization as a one-time cleanup project keep paying for the same problems – redundant systems, unmanaged technical debt, and IT spending that drifts out of alignment with business priorities. Forrester's case for continuous application portfolio optimization hinges on moving decision authority from IT-only governance into joint business-technology ownership, where portfolio choices are tied directly to outcomes and funding accountability. Senior leaders watching AI budgets should note that an ungoverned application estate quietly taxes every AI initiative, and no amount of AI investment compounds if the underlying portfolio keeps accumulating drag.