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Benefits of Application Management Services

The Benefit of AMSThe Benefit of AMS

When asked to name the one strategic issue concerning the IT environment that will take priority for them over the coming months, many corporate decision-makers answer: make or buy!

Without doubt, this core decision continues to be dominated by cost reduction in terms of a total cost of ownership analysis. Studying a variety of analyses of this topic, companies that have successfully implemented an outsourcing strategy, state an average cost reduction of 15 %. However, the spread is very wide, ranging between 10 % and up to 39 %. The press sometimes even reports figures of 50 % and more, which may be true in individual cases.

Even if this traditional outsourcing argument still takes first priority, a second argument is also gaining importance: improvement of quality while increasing flexibility. Or, in simple terms: to have access to the right resources at the right time combined with the right skills at the right place. And all of this without generating standstill capacities of one’s own.

Main arguments for AMS:

  • Lower costs (TCO) with the same or better services
  • Quicker reactions to changing expertise requirements
  • Demand-oriented human resources
  • Concentration on IT Governance and core competencies
  • Flexible reaction to changes in processes and organization
  • Guaranteed customer-specific Service Level Agreements
  • Transparent and use-based pricing
  • The selection of the right service partner is most commonly stated as one of the most important success factors.