Application Outsourcing: Achieving Success & Avoiding Risk

Author(s): Bethany Butzer, Howard Kiewe, Jennifer Colasanti

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Many IT leaders face challenges in meeting their application development and maintenance targets. Application outsourcing offers a number of benefits that can help to alleviate these challenges. Application outsourcing is the customization of packaged software, the development of unique applications, or the maintenance of these applications by a third-party organization. The application outsourcing relationship can be characterized by a short-term, vendor-client, single project structure or by a long-term partnership spanning multiple projects.

Organizations that engage in application outsourcing cite the following key motivators:

  • Access to specialized expertise
  • Faster application delivery
  • Improved overall business processes/workflow
  • Reduced costs
  • Access to headcount
  • Flexible headcount allocation
  • Allow IT to focus on more interesting work
 

Complete with a decision-making tool and detailed case studies, this report will:

Explain the concept of application outsourcing.

  1. Describe the demographics of organizations that engage in application outsourcing as well as the key motivators for application outsourcing projects.
  2. Offer recommendations as to how to realize operational success and mitigate challenges.
  3. Provide guidance on choosing an outsourcing partner and managing the outsourcing partnership.

 IT leaders are required to provide support for applications, both new and legacy. IT must enhance existing systems, develop new ones, or configure new and unfamiliar software to the organization's specific needs. Use this report to learn how to leverage the many benefits of application outsourcing for your enterprise.

Tool (included): The associated “Application Outsourcing Success Tool” gives organizations the opportunity to apply the findings of the application outsourcing report to their own unique needs and characteristics. By answering a short questionnaire, the tool will indicate an organization's estimated success at application outsourcing, as well as expected success areas and challenges. The tool will also provide recommendations to mitigate challenges and maximize success.

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