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Organizations Choose to Outsource Application Management as Long-Term Strategy, Says META Group

  • 20 February, 2004 11:11

<p>Organizations Choose to Outsource Application Management as Long-Term Strategy, Says META Group
META Group Launches Application Management and Outsourcing Services Report</p>
<p>Sydney, Australia (February 20, 2004) — META Group, Inc. (Nasdaq: METG), today launched its Application Management and Outsourcing Services market research report. Findings included in this report come from a Web-based survey of more than 1,000 respondents on the current and anticipated use of IT application services. The study helps to better understand the drivers and influencers in the decision to use external service providers and help organizations strike a more balanced approach to application outsourcing.
“The question is not whether or not to outsource, but rather which elements of the IT portfolio are most suited to an outsourcing engagement,” said Kip Martin, vice president with META Group’s Technology Research Services. “Although the benefits of outsourcing are well established, determining the applicability of outsourcing to applications is more challenging — and the benefits potentially more elusive.”</p>
<p>Global 2000 organizations are investing considerable financial and human resources in the development and maintenance of applications across the IT portfolio, according to META Group. The application portfolio is becoming more complex as the proliferation of Web services drives exponential growth of interapplication integrations and as the number of enterprise applications increases due to applications migrating from being experimental to becoming core to strategic business processes. The increased use of more sophisticated and heterogeneous applications by small and medium businesses (SMBs), coupled with the drive to integrate with Global 2000 trading partners, is also complicating the application portfolio.Results of the study indicate the decision to use an outside service provider for application management is driven primarily by business issues and not by perceived deficiencies in the ability of the enterprise IT organization. The primary selection criteria for service providers are the cost of services and return-on-investment (ROI) metrics. Findings also showed that organizations that choose to outsource are not doing so as short-term strategies. Application specialists and local/regional providers are the most frequently used type of application management service provider. In contrast, management consultants and offshore outsourcers are the least used type of service provider for application management.</p>
<p>About the Report
META Group’s Application Management and Outsourcing Services market research report was designed to help IT organizations better understand which elements of the IT portfolio are most suited to be outsourced and illuminate the issues and constituents that influence the decision to use application management and outsourcing services.
This report includes the following: 1) insight into the most popularly outsourced applications and their management in both small and large organizations; 2) detailed outsourcing service provider satisfaction scores from more than 1,000 companies surveyed; 3) a breakdown of how organizations are allocating budget and resources to applications, as well as where it makes sense to use an outsourced service provider; and 4) an analysis of the buying decision process that enables organizations to determine the level of involvement from IT executives and management, along with outside influences that must be considered.</p>
<p>About META Group
META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META
Group’s experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit for more details on our high-value approach.</p>
<p>Editorial Contacts
Kirsten Davey
Markom Marketing
<p>Peter Carr, Vice President, Director Operations
META Group

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