Blog: Managed Services

Top 5 Reasons to Consider Outsourcing Application Management Services – A Business Perspective

March 15, 2023 - by Synoptek

In today’s fast-paced and ever-changing business environment, organizations continuously seek ways to improve their IT operations while staying focused on their core business objectives. This explains why the Global Managed Services market is expected to be $311 billion by 2027 and why businesses are increasingly recognizing the advantages of collaborating with an Application Management Services (AMS) partner.

The Key Challenges Facing Mid-Enterprise Businesses

With the increasing reliance on technology to drive growth and innovation, businesses find it challenging to manage their IT operations effectively, particularly regarding emerging technologies and regulatory compliance. Some of the key challenges facing mid-enterprise businesses are:

1. Keeping Pace

The emergence of new technologies has brought about a digital transformation that has impacted every aspect of modern society. One of the key components of this transformation is the shift toward cloud computing, which has enabled organizations to streamline their operations and improve efficiency. However, this shift has also created new challenges for the workforce, including the need for 24/7 staff coverage, which can be costly and can lead to burnout. Additionally, the competitive IT job market has made it difficult for organizations to find and retain skilled workers and keeping skill sets and certifications current has become a growing concern.

2. Streamlining Risk Management

Mid-sized enterprises face several risks, including growing compliance and audit requirements, which can be time-consuming and costly. Additionally, they face increasing cybersecurity risks, such as ransomware and data breaches, as well as the challenges of managing a remote workforce, which can expose them to new problems. Moreover, they must ensure business continuity and disaster recovery capabilities to manage risks effectively. Failing to do so can lead to significant financial and reputational damage, including loss of customer trust and poor market reputation.

3. Managing Technology TCO

Managing technology TCO is another significant challenge for mid-sized enterprises. They incur several costs related to technology, including CapEx for infrastructure expansion and refresh, such as purchasing new hardware and software, and OpEx including labor, support contracts, and licensing fees. They also need to manage project costs, including planning, execution, and monitoring, to ensure that projects are delivered on time and within budget. Additionally, enterprises must focus on cost optimization, including vendor contracts, expense audits, and workforce productivity. Failing to manage technology TCO effectively can lead to increased costs and reduced profitability, making it difficult to compete with other organizations.

The Application Managed Services Imperative

To address these challenges, businesses are turning to Application Managed Services (AMS), a managed services model offering various benefits, from improved innovation to enhanced operational efficiency. Let’s find out why businesses should start increasing their investment in AMS:

1. Boost Innovation and Growth

One of the primary benefits of AMS is that it helps businesses build a stronger IT foundation that supports innovation and growth. AMS providers offer expertise in the latest technologies, allowing organizations to leverage emerging solutions to improve their operations. This can result in better customer experiences, increased revenue, and competitive advantages in the market.

With AMS, businesses can leverage the expertise of managed services providers to stay up-to-date with the latest application trends and technologies in their industry. AMS providers can further help companies identify emerging technologies and develop customized apps and solutions that meet their unique needs.

2. Enable Business Continuity

AMS providers offer real-time troubleshooting and support, minimizing downtime and accelerating issue resolution. This allows businesses to maintain business continuity and reduce the impact of IT issues on their operations.

By outsourcing their IT needs to a Managed Services Provider, businesses can rest assured that their IT infrastructure is in good hands. AMS providers offer 24/7 support for any application-related issues, ensuring businesses can access the help they need whenever they need it.

3. Elevate Customer Experience

AMS helps businesses enhance customer experience by ensuring that their applications are reliable, responsive, and perform optimally. With the help of AMS providers, businesses can improve their app uptime, reduce latency, and eliminate performance bottlenecks. This can result in faster load times, smoother navigation, and better overall user experience, which can lead to higher customer satisfaction and retention rates.

Additionally, AMS providers can help businesses analyze user behavior and gather insights to optimize their apps for a better customer experience. They can also provide proactive maintenance and support to ensure that the apps are always running smoothly. Such constant efforts in improving customer experience can enable them to differentiate themselves from competitors and build a loyal customer base.

4. Increase Scalability

Another benefit of Managed Application Services is scalability. As businesses grow and IT needs change, AMS providers can adjust their services to meet those changing needs. This means that companies can easily scale their application infrastructure up or down as needed without investing in additional hardware or personnel.

This scalability also makes businesses more agile and responsive to changing market conditions. By quickly adapting their app infrastructure to changing business needs, businesses can better position themselves for success in a rapidly evolving marketplace.

5. Enhance Operational Efficiency

Application Management Service providers can help businesses improve operational efficiency by streamlining their IT operations. By outsourcing their app monitoring and management needs, companies can reduce the amount of time and resources required to manage complex apps. This can help businesses improve efficiency and focus on their core business objectives.

Furthermore, AMS providers offer predictable pricing models that allow businesses to budget more effectively for their IT needs. This can help organizations avoid unexpected costs and improve their financial planning.

Level Up with Application Managed Services

In conclusion, AMS offers a range of benefits for businesses, and by outsourcing their IT needs to an Application Managed Services Provider, businesses can focus on their core business objectives while leaving the management of their custom and business apps in the hands of experts.

With the increasing importance of technology in today’s business environment, Application Management Service Providers can help businesses stay ahead of the curve and position themselves for success.