13 May 2016
3 MINS READ
Application Managed services (AMS) market is at an inflexion point. There are two key trends that are strongly emerging as game changers:
All AMS Providers are making significant investments in the above two areas, for reasons like
Some AMS providers have clearly steered through the complexities involved in integrating the two solution elements in their managed services proposition. These providers have gained a lot of ground and competitive advantage.
While the above trends relate closely to emerging commercial models like Outcome based Models in Application Managed Services, we would not be delving on these emerging commercial models. The focus of this post would be aligned to Service Delivery Innovation capabilities.
While the idea of Business Aligned Application Management has been there for some time, identifying the right solution blue print for this, has been quite a challenge.
Complicated Portfolios for ASM: Majority of large corporations that outsource AMS have complicated portfolio of applications with a mix of large ERP applications(SAP, Oracle etc) along with bespoke applications on multiple technologies(Java, .NET etc), that cuts across their core business processes. While the vendors of the large ERP apps offer business aligned application management capabilities with their own tools and frameworks, the applicability and adaptability of these tools for their entire portfolio outside ERP and process inventory remains a question.
Mapping Business outcomes through Frameworks: The next challenge is to map the business outcomes and quantify the associated business benefits by implementing Business aligned Application management. Business aligned Application Management Frameworks cuts across application middleware, Infrastructure layer to provide visibility and flexibility to proactively address the bottlenecks impacting business operations. ASM providers strive to address this issue through framework and tools that takes care of all impacted areas in the IT stack and business process.
Domain Expertise: A critical aspect of Business Aligned Applications Management is domain expertise. To create a significant impact on business outcome, it is essential to gain a solid understanding of business domain of customer and their best practices.
Correlating Industry KPIs: Understanding the KPIs impacting customer business environment and associating them with the underlying IT systems is the first step in business –IT alignment. Correlating Industry KPI benchmarks of the domain with that of the customer and jointly identifying areas of improvement, will provide a clear direction to start.
Most of the business KPI tools offer configuration of the IT systems to Business Process alignment and monitoring. Business KPI tools have visibility across business value chains and allow proactive system based business process intervention for successful implementation.
The provider should clearly articulate the link between their involvement in this initiative and associated business outcomes, to ensure customer acceptance. Opting for an outcome based model would bring in high level of trust between customer and service provider.
Technology disruptions are continuing in the IT Service Delivery at an unprecedented pace and service providers are under pressure to respond quickly to changes and to establish themselves as strategic business enablers.
Everest predicts that Service Delivery Automation (SDA) would be the next big thing in ITO and BPO service delivery. Service Delivery Automation in Application Managed services has ushered in a new way of disruption that forces all leading Managed Service providers to re draw their strategy.
Automation is a critical lever in achieving industrialized delivery. SDA vendors like IPSoft and Aargo are committed to automating up to 70% in their service delivery value chain, using knowledge based automation tools.
Knowledge based automation tools heavily rely on knowledge repository and their cognitive capabilities in providing resolutions to Incidents. In cases of complex scenarios, experts support would be used to handle those scenarios.
Almost all traditional AMS providers have forged partnerships with leading automation vendors and offer automation as a part of their Managed Services framework. Traditional AMS providers have all realized that to sustain in the longer run, they need to have their own automation tools and have started to invest in them.
While there is so much happening and positive endorsement on automation, from both Analysts and Provider Community, there is a lot that needs to be achieved to gain wider acceptance and adoption from customers.
Based on success stories shared by Automation vendors, it appears that there is a good amount of progress made on Infrastructure and Business Process service delivery automation. On the applications side, the success so far has been limited to Automation of Level 1 and Level 1.5 category of Incidents.
Application Managed service providers trying to invest in automation and aiming to get the best from this disruptive wave will have to get clear perspective on the below points:
Others
26 Oct 2017
22 Nov 2016
23 May 2016
Digital Assurance, Enterprise Solutions, Others
26 Apr 2013
22 Mar 2013
18 Mar 2013
01 Mar 2013
BI & Analytics
19 Mar 2009
26 Nov 2010
Digital Assurance
02 Jan 2012
17 Feb 2012
Digital IT Ops
02 Mar 2012
03 Jan 2013
04 Feb 2013
06 Feb 2013
Digital Assurance, Enterprise Solutions
14 Feb 2013
18 Feb 2013
21 Feb 2013
27 Feb 2013
04 Mar 2013
Enterprise Solutions
05 Mar 2013
12 Apr 2013
29 Apr 2013
13 May 2013
11 Jun 2013
17 Jun 2013
25 Jun 2013
19 Aug 2013
26 Aug 2013
27 Aug 2013
03 Sep 2013
10 Sep 2013
19 Sep 2013
24 Sep 2013
26 Sep 2013
30 Sep 2013
01 Oct 2013
03 Oct 2013
01 Nov 2013
19 Nov 2013
Enterprise Solutions, Manufacturing and Consumer
28 Nov 2013
03 Dec 2013
20 Dec 2013
03 Jan 2014
22 Jan 2014
27 Jan 2014
31 Jan 2014
12 Feb 2014
13 Feb 2014
20 Mar 2014
24 Mar 2014
17 Apr 2014
11 Jun 2014
Manufacturing and Consumer
26 Jun 2014
30 Jun 2014
10 Jul 2014
15 Jul 2014
16 Jul 2014
18 Jul 2014
28 Oct 2014
13 Jul 2015
06 Aug 2015
26 Aug 2015
28 Sep 2015
07 Oct 2015
26 Oct 2015
07 Mar 2016
22 Mar 2016
Cloud Transformation
11 Jul 2016
25 Aug 2016
03 Sep 2016
14 Sep 2016
15 Nov 2016
25 Nov 2016
Business Process Services
25 Apr 2017
Banking and Financial Services
18 May 2017
30 May 2017
23 Jun 2017
27 Jun 2017
18 Jul 2017
Healthcare, Insurance
28 Nov 2017
11 Dec 2017
25 Jan 2018
21 Feb 2018
14 Mar 2018
( Mandatory field * )
The information you provide will be used in accordance with our terms ofPrivacy Policy
Please Check on "I Agree" to register for the blog.