Application Management Outsourcing: Forms, pricing, useful tips

Application Management Outsourcing: Forms, pricing, useful tips

Application management is one of the jobs that are most often outsourced by many companies. This lets the employers significantly reduce the expenses and increase the efficiency of the work done.

Before you proceed to AMO (application management outsourcing), we recommend that you read our article about what is included in this service, its forms, pricing models, and other important issues.

What is included in application management?

Application management ensures that the software is always available, works efficiently, and is relevant to the current needs of a business. Some of the other features that might be available are:

  • Service monitoring
  • Debugging
  • Enhancing the management of the app
  • Managing incidents
  • Assisting desk services

The list may include even more points, but these are the basics to understand the meaning of the service.

What drives application management outsourcing

Although reducing costs and improving work efficiency are the main reasons to work with AMO, there are many other reasons:

  • A remote team can be easily scaled depending on the needs of your business;
  • A possibility to use various technologies, methods, and processes;
  • Improvement of the overall software performance;
  • In-house teams get more time and space to work on new strategies and focus on more important tasks.

As you can see, there are many benefits to working with outsourcers in this task. This is good for both outsourcing and in-house teams in different ways.


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Forms of application management

AMO has got many different forms that determine the responsibilities and roles of the team members. There are two main forms:

  1. All-round outsourcing

In this form, almost everything related to the task is placed on the team. This includes the management itself, the enhancement, and optimization of the service. The team also provides ideas for the improvement and development of the application. If something in your business changes and the application has to be adapted to it, the team is also responsible for it.

  1. Selective outsourcing

If you select this form of work, the team is only responsible for working with some of the tasks or certain areas of the job. For instance, this can be the improvement or bug fixing of the application. It completely depends on the needs of the company.

Application Management & Outsourcing Services

However, these two points are not the only terms that exist in the field. There also are several others that depend on the location of the service provider.

  • Onshore: when the service provider is located in the same country;
  • Nearshore: when the service provider is located in a close country and works within the same time-zone;
  • Offshore: the provider is located on another continent with another time-zone;
  • Mixed: when different teams are located in different areas and time-zones.

The second and third options are considered to be the most profitable ones. However, you must be aware of the multiple pitfalls like communication issues, differences in culture and language, and also different laws.

Pricing models in AMO

There is a huge variety of pricing models that can be chosen when working with an outsourcing team.

  1. A dedicated team

You pay a fixed price that is distributed among all the team members.

  1. A fixed price

You are billed monthly or yearly depending on your contract. This is a good way to plan your budget ahead.

  1. Incident-based price

You pay for each completed task or for the time it takes the team to find a solution.

  1. Mixed

You pay a standard amount to get a fixed number of tasks that the team can solve. A bigger number of tasks or very complicated assignments are charged separately.

  1. Value-based price

You pay for the completion of the agreed key performance indicators (KPIs) and the efficiency of the work. This is a relatively new form of payment and not many specialists will agree to work this way. However, it will help you make sure the tasks are completed with the best quality.

How to choose an AMO team

If you are in search of a team for application outsourcing, you must know how to choose one. There are several points you need to follow.

  1. Choose a flexible team

Only the services that are really needed must be provided. This will save the time and money of the company.

  1. Use modern approaches

Make sure the service provider supports all the features you use: auto testing, cloud computing, etc.

  1. Structure the communication with the team

Each level has to have a representative with whom you will be able to communicate about the tasks. Also, the service provider must use a way of communicating that is comfortable for you (email, phone, etc).

  1. Get a global team

It is usually necessary that you get a group of specialists who can provide 24/7 support in multiple languages.

  1. Make sure the provider complies with regulations and standards

Finally, one of the most important points is that your team complies with different requirements. This is especially related to industries that are connected with banking and finances.

What should you do?

If you do not want to make things complicated and need to start working right away, the Global Cloud Team is the best choice. Our specialists are aware of all the details in application management services and follow all the points that were listed in this article.

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