Selecting an application managed services partner has traditionally been a decision to cut costs, increase efficiencies, and free up internal resources but in the digital age, the right application managed services partner must also help to support and enable a business’ digital transformation. IT tools and applications are the fuel that drive innovation and digital transformation in a business so selecting an AMS partner that can truly assure that change will enable closer alignment to the larger business objectives and greater long-term returns.
According to Gartner, almost 70% of IT spend goes towards “keeping the lights on.” Inherently, selecting an application managed services partner should free up costs for digital initiatives but more than that, they should also be prepared to help you understand how your enterprise systems can be updated, replaced, or optimized for digital capabilities. The right AMS partner will sit at a unique intersection – both understanding your enterprise environment and having a deep knowledge of the external landscape of enterprise systems, capabilities, and trends.
This shouldn’t be a purely outsourcing relationship but a true partnership where your application managed services partner is helping you accelerate innovation and advance business objectives by identifying opportunities for greater efficiencies or cost savings that can be reallocated to digital transformation initiatives.
An analysis by Okta Inc. showed that businesses on average run 129 enterprise IT applications with that number expected to grow in the future. In the “as-a-service” age, the increasingly complex web of interconnected enterprise applications and systems can bury businesses and confuse users.
The right AMS partner will be able to help your business with application rationalization and/or modernization without sacrificing business efficiency or functionality. In doing so, a simpler, more streamlined enterprise landscape serves as a better foundation for digital transformation, allowing businesses to be more agile and flexible in adopting, iterating, and actualizing digital capabilities.
Failure rates for digital transformation, though varied from study to study, tend to fall in the 60-80% range. Often, an overemphasis on the technology implications and processes with little focus to the changes to users and responsibilities contributes to this failure. Your AMS partner should be able to balance functionality of the application, it’s user interface, and usability equally to ensure optimal adoption and sustainability. Understanding the capabilities of the system, your users’ behaviors, and the goals of the application, your AMS partner can serve as a positive change agent in your path to digital transformation.
Inherently, partnering with an AMS partner will free up internal resources to focus on digital transformation initiatives. But selecting an AMS partner who not only clears the path of obstacles but also optimizes your enterprise at the digital core will ensure a greater and more rapid return on investment.
As a representative of your business or technology department your role in choosing an AMS provider is to find a true partner to your business who can contribute to your bottom-line via cost savings and revenue growth.
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