The roles of the CIOs and CTOs has fundamentally shifted. Gone are the days when IT was solely about maintaining infrastructure and “keeping the lights on”. In today’s tech world, leaders are expected to be strategic partners, driving innovation, enabling business agility, and contributing directly to the bottom line. In this new landscape, Application Managed Services (AMS) are no longer a simple cost cutting tactic; they’ve become a strategic imperative for organizations seeking to thrive in this changing world.
Whilst traditional in-house IT models are increasingly struggling to keep pace with the demands of modern business. Internal IT teams often find themselves overwhelmed by the day-to-day grind of application maintenance, patching, and troubleshooting. This leaves little time for strategic projects, digital transformation initiatives, or the exploration of emerging technologies such as Generative AI.
The result? Stifled innovation, missed opportunities, and a growing disconnect between IT and broader business objectives.
For some, AMS was always viewed as a cost-cutting measure – a way to offload routine tasks like patching and basic troubleshooting. But forward-thinking organizations are now realizing the transformative potential of AMS when implemented strategically. It’s not just about reducing operational overhead; it’s about unlocking business agility and empowering IT teams to focus on higher-value activities.
Today, strategic AMS is less about outsourcing tasks and more about establishing this strategic partnership with a provider that acts as an extension of your IT organization. This approach offers a multitude of benefits that empower leaders to:
- Focus on Core Business Objectives: By trusting routine application management to an expert provider, IT teams can free themselves from tactical constraints and focus on those strategic priorities. This might include developing new digital products, driving cloud migration strategies, or exploring innovative technologies.
- Enhance Efficiency and Productivity: Proactive monitoring, automated processes, and predictive analytics – hallmarks of strategic AMS – enable providers to identify and resolve issues before they escalate. This minimizes downtime, improves application performance, and enhances overall productivity.
- Unlock Innovation and Agility: By freeing up resources and leveraging the expertise of an AMS partner, organizations can accelerate their pace of innovation. This enables faster time-to-market for new products and services, and a greater ability to adapt to changing market demands.
- Improve Cost Predictability and Control: Traditional IT models often involve unpredictable expenses. Strategic AMS, with its clearly defined SLAs and transparent pricing models, allows for more accurate budgeting and greater cost control.
- Strengthen Security and Compliance: Modern AMS providers have deep expertise in security and compliance, implementing robust measures to protect applications from threats. This is particularly important in today’s increasingly complex and regulated business environment.
- Access Specialized Skills and Expertise: Finally, a high-quality AMS partner brings a deep bench of specialized skills and knowledge that may not exist within internal teams. This can include expertise in areas like cloud technologies, specific enterprise applications, and emerging tech trends.
Bottom line, when selecting the right AMS partner, it’s essential to look for a provider with a structured and transparent approach. Models, like the one Hitachi Digital Services uses, focus on efficient handling of support requests, incidents, and operational changes. The model includes elements such as:
- Prioritized Support: Incidents are classified and triaged based on impact and urgency, ensuring critical issues are addressed promptly by specialized personnel.
- Multichannel Access: Support requests can be submitted through various channels, including automated agents, IT Service Management platforms, and direct communication with support staff.
- Continuous Feedback: An iterative loop ensures that processes are continually refined based on performance data and user feedback.
- Data-Driven Optimization: Leveraging data analytics to identify areas for improvement in performance, efficiency, and user experience.
- Innovation Hubs: Dedicated units focused on converting manual processes to automation and enabling self-service.
- Commitment to SLAs: Ensuring services are delivered with a commitment to meeting agreed upon Service Level Agreements (SLAs).
Application Managed Services transformation reflects a broader shift in the role of leadership. CIOs and CTOs are no longer just managers of IT infrastructure; they are now strategic drivers of business transformation. Strategic AMS provides them with the tools and resources they need to focus on their highest-value priorities, driving innovation and ensuring that IT is a powerful enabler of business success. By embracing a strategic approach to AMS, CIOs and CTOs can position their organizations for future success, fostering a culture of innovation, agility, and continuous improvement. It’s about making a fundamental shift from a reactive to a proactive IT model, where technology is an engine of growth, not a constraint. If you’re looking to explore the possibilities of strategic AMS, consider how a structured approach, combined with a focus on continuous improvement and innovation, can transform your IT operations.
You can read more on the February edition of the FinTech Magazine:
