Dynamics Management: Delivering Strategic Business Results With Application Management Outsourcing

Even in challenging times, companies need to handle Dynamics Management and run their businesses

. Finding ways to cut costs will remain a top priority for senior staff for the foreseeable future. One area ripe for cost reduction and service enhancement is outsourcing application management.

Maintaining business-critical applications is an expensive proposition. And, Dynamics Management can represent the majority of an IT budget. Contributing to this expense is the high cost of local resources, lack of coordination among support teams, use of one-off tools and inconsistent process models. Managing these applications requires key resources that could be spending time with more strategic initiatives.

The costs associated with application management should be considered an investment in the companys future. The right mix of processes, tools and resources can deliver the best application management solutions. The team can also focus emerging technologies and ensure applications meet changing business requirements.

Whats Driving the Need for Outsourcing Dynamics Management?

Many factors are causing organizations to outsource IT operations, especially application management. The ability to better manage applications can have a profound impact on business success. In particular, the following issues are driving the move to outsourced solutions:

Increasing Cost of IT. According to Gartner, Inc., an industry analyst in the information technology space, companies spend more than 70 percent of their IT budgets on support and operation of their existing technology. Approximately 30 percent goes to IT staff salaries for handling the ongoing operations and maintenance. With this configuration, businesses have a hard time being proactive when it comes to Dynamics Management.

Lack of Business and IT Alignment. Many companies have not successfully aligned the needs of the business with IT capabilities. This disconnection negatively affects the organizations strategic pursuits. Instead, companies need to fully use the in-house business knowledge to support business initiatives.

The Need for Increased Productivity. Some companies lack the established methodology or committed resources to optimize Dynamics Management. For example, they may not have the appropriate monitoring tools to increase performance and decrease downtime. And, continually adding application enhancements reduces staff productivity.

The Need for Greater Agility. IT staff must be able to react to new business initiatives and opportunities. For example, changing economic conditions might require new ways of doing business. But, over-burdened IT staff is often unable to meet these ongoing business demands.

Key Capabilities for Dynamics Management

The following four capabilities are essential to effective application management:

Transitional Capability. Moving Dynamics Management from one organization to another is one of the most important events in outsourcing. An outsourcing partner must have the specific knowledge necessary to support and maintain mission-critical applications.

Process Capability. Process capability fine-tunes each associated process until it results in productivity gains. With exceptional transitional and process capabilities, companies can see immediate improvements to application management.

Technical Capability. Companies must address how they will evolve and deliver innovative application resources over time. They must also be capable of supporting a wide range of applications, including legacy technologies.

Measurement Capability. This capability is crucial to determining whether a companys outsourcing partnership is meeting goals. Success must be measured quantitatively so the contribution to business benefits can be clear.

Especially in todays stagnant economic environment, companies continually look for ways to reduce spending. One of the best ways to reduce IT spending is by outsourcing Dynamics Management. The company not only cuts associated costs, but improves performance levels throughout operations. By outsourcing application management, companies can:

Realize major cost savings in application maintenance and management.

Increase productivity by freeing up IT resources so they focus on more strategic initiatives.

Remove redundant functionality and streamline operations.

Move Dynamics Management to a flexible, modern environment.

The case for outsourcing has been made for many years and the trend is clear. More and more companies are realizing the major benefits associated with outsourcing application management.

by: Chuck Vermillion

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