Businesses are increasingly looking to application services providers to help cut costs and boost productivity, but selecting the right partners is essential says analyst firm Ovum.
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Since the global economic recession, there has been a marked uptick in demand for application services, particularly for enterprise resource applications such as those from Oracle and SAP, leading to increased competition and choice, says John Madden, senior analyst at Ovum.
However, he says while increased competition is usually good for driving down prices and improving services, chief information officers still need to do their homework before choosing an IT services partner.
In the absence of working experience with a services provider, there is no better way of finding out the strengths and weaknesses of a potential partner than by talking to peers and finding out what they have done and following their best practices, says Madden.
Once the decision is made, it is important to put mechanisms in place to measure what application services providers are delivering, he says, to ensure the business is getting what it needs and what it has been promised.
Madden is to explore these issues in a session at the Ovum Industry Congress 2011 at the London Heathrow Marriott Hotel on 17 May. He is to present a session on best practices for CIOs in selecting SAP and Oracle services partners with Jens Butler, principal analyst at Ovum.