Assessment tool helps organizations evaluate the risks and rewards of application managed services


Info-Tech Research Group has developed a free Web-based assessment tool that evaluates an organization’s fit for application management services, or AMS. AMS, also called application outsourcing, is the contracting of software application development or management to a specialized partner, rather than doing it in house. The assessment collects information about an organization’s IT and business strategy, and provides a customized evaluation that outlines the probability of success as well as the challenges and risks involved in AMS. The tool, available at http://ams.infotech.com/step_1.html, also provides custom recommendations on project management to improve an organization’s success with an AMS project.

AMS can provide IT organizations with cost-effective and flexible way of tapping the technical resources needed to develop and manage applications, according to Howard Kiewe, senior research analyst with Info-Tech Research Group. The assessment, he adds, is an easy way for organizations to evaluate if AMS is right for them.

“While AMS can deliver benefits to many organizations, optimal results will only come from smart managers making smart decisions,” says Kiewe. “Understanding your organization's AMS readiness, selecting the right partner, and actively managing the relationship are key elements to success.

The assessment tool is based on in-depth research of more than 130 North American organizations that use AMS. The study found that organizations that clearly defined their requirements, carefully selected an AMS partner, and actively managed the relationship were successful regardless of the size of their organization or type of software outsourced

The primary reason organizations engage an AMS partner is to access to specialized skills, the study reveals. "While cost reduction is sought after and accomplished by some organizations, for most the key driver is the rapid delivery of quality software" say Kiewe. "Specialized software provides a compelling competitive advantage but many organizations don't want the financial risk of recruiting and managing the programming talent to deliver it quickly, so they fill the gap with AMS. Layoffs are uncommon because most organizations are adding to their existing capacity, rather than replacing in-house staff."

About Info-Tech Research Group

With a paid membership of over 21,000 worldwide, Info-Tech Research Group (www.infotech.com) is a global leader in providing tactical, practical Information Technology research and analysis. Info-Tech has been addressing the needs of IT professionals for over 10 years, and is one of North America's fastest growing full-service IT analyst firms.

For interviews with Info-Tech Research Group, contact Rachel Flewelling at rflewelling@infotech.com or 1-888-670-8889 ext. 3061

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