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Tuesday, December 5, 2023

Best Practices for Implementing Application-Managed Services

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When it comes to managing IT services, there are different approaches. Some organizations prefer to handle everything in-house, while others opt for-managed services. Managed services come in different forms, including infrastructure-managed services, SAP-managed services, and application-managed services. This article will focus on application-managed services and discuss the best practices for implementing them.

What are Application-Managed Services?

Before diving into best practices, let’s define application-managed services. Application-managed services refer to outsourcing application management functions to a third-party service provider. These functions can include application maintenance, upgrades, monitoring, and support. Essentially, the service provider takes care of the day-to-day operations of the application, allowing the organization to focus on its core competencies.

Why Use Application-Managed Services?

There are several benefits to using application-managed services. Here are some of the main ones:

  1. Cost savings – By outsourcing application management, organizations can save on costs associated with hiring and training staff, infrastructure, and software.

  2. Increased efficiency – Service providers have specialized expertise and tools to manage applications more efficiently than in-house teams.

  3. Better service levels – Service providers can provide better service levels, including uptime, performance, and response times, than in-house teams.

  4. Access to the latest technology – Service providers keep up-to-date with the latest technology and can implement it more quickly than in-house teams.

Best Practices for Implementing Application-Managed Services

Now that we understand what application-managed services are and why they are beneficial let’s discuss the best practices for implementing them.

1. Define clear objectives and requirements

The first step in implementing application-managed services is to define clear objectives and requirements. This involves identifying what functions you want to outsource, what service levels you require, and what your budget is. It’s important to involve stakeholders from different areas of the organization to ensure that all requirements are considered.

2. Choose the right service provider

Choosing the right service provider is critical to the success of application-managed services. When selecting a service provider, it’s important to consider factors such as their experience, expertise, and reputation. You should also evaluate their ability to meet your specific requirements and service level agreements (SLAs).

3. Develop a transition plan

Once you have selected a service provider, the next step is to develop a transition plan. This involves defining the scope of the engagement, the roles and responsibilities of each party, and the timeline for the transition. It’s important to ensure that all stakeholders are aware of the plan and their roles in it.

4. Establish clear communication channels

Effective communication is key to the success of application-managed services. It’s important to establish clear communication channels between the service provider and the organization. This includes regular meetings, status updates, and issue resolution procedures. It’s also important to define escalation paths for issues that cannot be resolved at the operational level.

5. Define service level agreements

Service level agreements (SLAs) are critical to ensuring that the service provider meets your expectations. SLAs should define the scope of the engagement, the service levels required, and the penalties for non-compliance. SLAs should be reviewed regularly to ensure that they continue to meet the organization’s evolving needs.

6. Ensure data security and compliance

Data security and compliance are critical considerations when outsourcing application management. It’s important to ensure that the service provider has robust security measures in place and adheres to relevant compliance standards. This includes data privacy regulations such as GDPR and HIPAA.

7. Continuously monitor and evaluate the service

Continuous monitoring and evaluation of the service are critical to ensuring that it continues to meet the organization’s needs. This includes regular performance reviews, service level reviews, and customer satisfaction surveys. It’s important to address any issues that arise promptly and to use the feedback received to make improvements to the service.

Overcoming Challenges in Implementing Application-Managed Services

  • Change Management: Implementing application-managed services involves a significant change in your organization’s operations. It’s essential to proactively manage the change process, communicate with stakeholders, and address any resistance to ensure a smooth transition.

  • Knowledge Transfer: During the transition, it’s crucial to facilitate effective knowledge transfer between your in-house team and the service provider. Document critical processes, share best practices, and provide training to ensure the service provider understands your applications comprehensively.

  • Governance and Vendor Management: Establish a robust governance framework to oversee the relationship with the service provider. Clearly define roles and responsibilities, establish performance review mechanisms, and maintain open lines of communication to ensure alignment and accountability.

  • Integration and Compatibility: Verify that the application-managed services seamlessly integrate with your IT infrastructure and other systems. Compatibility issues should be addressed early to avoid disruptions and ensure a smooth workflow across all applications.

  • Scalability and Flexibility: Consider your organization’s future growth and evolving needs when implementing application-managed services. Ensure that the service provider has the capacity and flexibility to scale their services as your business requirements change.


Implementing application-managed services can benefit organizations significantly, including cost savings, increased efficiency, and better service levels. However, to realize these benefits, following best practices is important. By doing so, organizations can successfully outsource application management and focus on their core competencies. Ready to unlock the benefits of application-managed services? Work with Diligent Global and experience cost savings, increased efficiency, and superior service levels.

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