What is application outsourcing? Data, definition, and services

Complex, inflexible, and expensive legacy systems are holding you back. Your customers expect more. By application outsourcing and automated management, you can significantly reduce costs and use your savings to fund the digital transformation initiatives. Your applications should evolve and scale within your business. So you need more than a static solution. If you want to know more, please read on.

Application outsourcing definition and benefits

According to Technopedia, we can define outsourcing as the processes related to application production, design, testing as well as consulting and management services. Technopedia gives an application outsourcing example – application management outsourcing which means that the work related to managing apps is delegated to third-party companies. Thus, businessmen can avoid doing that in-house.

There are numerous advantages of applications outsourcing but basically, it’s all about how we can generate quality. Many companies spend a lot of time on the operation, maintenance, and fire-fighting. Surely, they think how their resources can be spent on developing the business wire the applications. At the same time, there may be issues with capacity, lack of time, resources, or performance.

Application outsource can help turn that tide. With the help of outsourcing services, you will be definitely able to focus 100% on the application’s performance, and as a result, to see increased efficiency.

Applications can be complex that’s why you should start out with monitoring the application’s performance and structure the data generated by the monitoring. This way you should assure optimal performance and create the best value for the user.

Usually, application outsourcing companies manage such applications as SAP, Documentum, Microsoft Sharepoint site, legacy applications, and GxP apps (good x practice IT products). These companies guarantee capacity, resources, and special competencies and provide their teams to work with your software.

Within the global competing market, customers of application outsourcing providers can benefit from moderate prices and of course price matters. But what also matters is quality. To achieve both objectives it’s better to contact a reliable application outsourcing vendor.

5 tips on how to choose the right application outsourcing company

If you are facing the high costs in developing or managing applications, think of finding a reliable technology partner. In today’s highly competing environment and a great variety of application development and management companies, it’s quite difficult to find the right vendor. Not to be deceived by scams, you should adhere to the basic rules of selecting an outsourcing provider. Here are some useful tips on hiring a reliable team:

Tip 1 – Find out what previous experience in application outsourcing services a company had. Your team must possess a special set of skills to build or manage applications.

Tip 2 – Discuss with a potential vendor how they will increase the business value of your application. Ask them about the responsibilities they take while providing applications outsourcing services.

Tip 3 – Ask a potential partner about the support and maintenance costs, their approaches to partnerships, governance, and development.

Tip 4 – Make a list of the strategic requirements of your business. That will help your vendor build a particular roadmap for the future transformation of your business.

Tip 5 – Look through a company’s applications portfolio to see if you like the projects and if the company is able to meet your requirements.

Here are more tips on how to avoid cheating: “A compelling guide: How to timely manage IT outsourcing risks”.

Approaches to application outsourcing

Flexible delivery models

Like any other IT services outsourcing, application outsourcing is available offshore, onsite, or nearshore. If you want to know more about these delivery models read our article on “What is onsite and offshore Model? Hybrid delivery models in software development”.

Choosing the best-suited option of delivery model for you, you’ll be able to get the right services, in the place which is comfortable for you, at the right price.

Services efficiency

Any application outsourcing services must be effective and bring value to the table. They can either reduce your operating costs or enhance user experience. The best application management outsourcing services should facilitate the digital transformation of your business.

Your vendor should support your app at the level you need and require, no matter what support it is, low-cost, ongoing development, or maintenance, improvements, add-ons, or upgrades.

Expertise matters

To get the most from outsourcing, you should build long-term partnerships with your vendor. The company you trust to develop or manage your apps should be highly-expertise in the industry you operate in.

How can application outsourcing help your business?

A good applications outsourcing framework will help you not only with reducing costs but also with making your business grow gradually. A good technology partner will seek to implement new solutions to make your application consistent with the worldwide trends. Thus, perfect IT outsourcing services should be customer-centric, market-driven, and business-ready.

Being competitive in the modern world is the number one objective for businesses. With proper applications outsourcing services, companies will be able to follow innovative digital trends and integrate their business with artificial intelligence or Internet of Things solutions.

If your apps are legacy software products, don’t worry. The right application management outsourcing team can modernize it to be in tune with the spirit and the trends of modern IT culture. In our company, for example, we continuously assess the current condition of your product to come up with innovation and value. Business analysts can exactly estimate what decisive changes are needed to digitally transform your business. Here are the main benefits of apps outsourcing:

Application Outsourcing Benefits

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As you can see, you can get the following benefits with outsourcing applications development services:

gain a competitive edge in the market
save costs on the capital expenditure, time, efforts
allocate key resources to focus on major business goals
manage risks better
deliver products and services on time
modernize legacy applications

Besides these advantages, you’ll benefit from the increased efficiency and productivity, enhanced key functionalities, reduced investment in the workforce. Also, you’ll be able to reach the market faster.

3 steps to success in application outsourcing

So, to sum it up, we need to define the key steps to successful application outsourcing.

Step 1 – To be sure that your application can address today’s challenges, you need to hire an exceptional company to deliver high-quality development, support, and maintenance. A trusted technology partner will support each of your applications life cycle. Let’s revise what key benefits you outsourcing partner can give you:

enhance a company’s competitive position on the market
deliver an application on time and within budget
offer best application management outsourcing practices
migrate legacy systems
get outsourced application support

Those are basic things you should get from your provider.

Step 2 – Better use your company and industry with the help of automation. Move from industrialization to smart business solutions. Ask your vendor to apply smart business solutions across the application lifecycle. Automate the processes that can be automated.

Step 3 – Improve and innovate continuously. You should stop after you get your app done, modernized, or optimized. Capture every opportunity to make it more valuable for the end users.

If you’re just thinking of a reliable application outsourcing partner, this article is a good starting guide for you. Our team practices application outsourcing model and can help you solve your challenges related to software development.

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Phil Reynolds CEO at BriteCore

"DICEUS team has consistently supported the BriteCore team for many years. Their engineers are well-educated and highly invested in the ongoing quality of the BriteCore platform with sustained relationships that extend over four years. We appreciate everything the DICEUS team brings to the table as a development partner."

Soren Hundeboll Founder at InsuBiz

"The DICEUS team is flexible in this collaboration, their expertise shines. I like that they are not afraid to suggest alternative designs. If DICEUS team thinks that my way of crafting a user interface is not ideal, they will confront me with an alternative. They don’t simply take what I give them and run with it if there is a better way."

Soren Hundeboll Founder at RiskVille

"Existing clients were introduced to the cloud software and are eager to adopt it. Although accustomed to full stack development, the team is flexible in this work, because they managed to develop a certain part of the stack. DICEUS could recommend me alternatives to solve the issues."

Richard Haynes CEO at eTool

"The project ran smoothly. DICEUS delivered good work and increased resources in an effort to maintain deadlines. The project itself was adding functionality to an existing web app and DICEUS had to quickly become familiar with a very large code base to deliver the work which is commendable. We will consider them for future projects."

David Abbott CEO at Take Note

"We were relieved when we started the work with DICEUS, the competence level promised, was evident with a real commitment to quality. They gained a quick understanding of our business which meant they were highly productive very quickly. The price was also competitive, reducing the costs of working with our previous partner in India and probably halving the price we would pay for less qualified developers in the UK."

Robert Koval Managing Director at TeamBase DMCC

"The collaboration has increased by as much as 25% each year, thanks to DICEUS’ technical capabilities and quick feedback adoption. The team’s professionalism, cost-effective rates, and consistent delivery continue to support both the engagement and product end-users."

Andrew Kagan Project Coordinator at AMFS

"DICEUS demonstrated a very high degree of expertise in the type of programming and the product environment that they’re working in, which is exactly what I was hoping to find. I would say their core competency was having a very strong depth of programming expertise and knowledge within this particular market, and also within the platform that they were working on."