Industry Insights
Application Outsourcing is the second fastest growing segment with a worldwide CAGR of 7.7%, with Application Management and Operations holding the largest chunk among all Application services (Source Gartner).
The key trends or drivers behind the increasing demand of Application Management Services are as follows:
- Buyers demand better performance
- Increasing ‘Satisfaction Gap’ from the current portfolio
- Delivery capabilities continue to grow and go globally
- Highly competitive providers within a highly confusing offshore landscape
- Cost Orientation
Organizations broadly seeks Integrated Application Management and Operations and Real time transaction monitoring and resolution for effectively manageing their Applications portfolio. Organizations basically look-out three key points while considering an Application Management service provider:
- Relationship Alignment
- Operational Capabilities
- Industry Process maturity
The key customer expectations from the outsourced Application Maintenance services are:
- Improved Technology Support
- Direct Cost Savings
- Reliability/Performance Measurement
- Flexibility in Scale
- Process/Productivity Improvement
- IT Governance
