In turbulent times, cutting costs is more important than ever. However, to improve core business processes and become more agile and responsive, businesses must also focus on sourcing higher-quality services from partners and suppliers. Unfortunately, economic crises can make these straightforward goals difficult to achieve. This is where T-Systems’ Application Management (AM) can help.

According to Stephan de Haas, Vice President, SI Sales, and Head of Strategy and Architecture at T-Systems International, Application Management is the right tool for slashing costs and driving efficiency. The expert explains: “This is the most comprehensive form of outsourcing. The external provider does not just perform project and implementation services. They are also responsible for operating, maintaining and improving these applications in accordance with clearly defined service level agreements (SLA). Plus the AM package includes user support via a central user help desk.”

AM is based on ITIL, the de facto international standard for service management. Key core services include:

High potential for savings

Experts at Pierre Audoin Consultants (PAC) explain: “Freeing up resources delivers savings at relatively low risk.” Generally, analysts believe that AM can cut costs by somewhere between 10 and 30 percent.” “We predict an average of 25 percent,” says Stephan de Haas. To achieve these savings, an initial analysis of the company’s current IT situation is crucial. In addition to having IT skills, the external provider must also have an in-depth understanding of industry-specific and company-specific business processes.

Read more about Application Management in the print edition of Best Practice.