Harmonize IT operations, integration, and innovation with Application Management Services

SAP Application Management: What Is It and Why Is It Important?

(4 min read)

Application Management Services (AMS) are services for companies that need to outsource some or all of their enterprise application support. Managing applications is usually done by the internal IT department, so why now outsource this task to an external service provider? What does that mean? Why does it matter?

Digitalization is fully on its way, and it’s coming fast. The complexity and speed of change make it a challenge to keep up. It requires becoming a business strategist and a driver for transformation, all while keeping daily operations running and costs low. Technologies like cloud, analytics and mobility; as well as visionary ones like artificial intelligence, blockchain, and augmented reality will be important to future success. But, how do you support all this while being completely busy with day-to-day operations?

Let’s have a look why Application Management Services have become crucial.


What Does AMS Include?

Application management services can range from on-demand SAP support through full application outsourcing and hybrid landscape management – also called managed cloud. This can also include application enhancements (change requests, upgrades, roll-outs), optimization (advisory services, assessments, roadmaps), incident management as well as change management. At the core of a good AMS offering is the time to value.

These end-to-end services are delivered by qualified consultants who leverage their SAP expertise and business knowledge to deliver maximum value to your organization. Because they do this repeatedly and have teams of experts across the SAP landscape, time to value is reduced.

The AMS provider becomes an extension of your organization, giving you the ability to be more strategic with your SAP solution. This means AMS does more than just “keeping the lights on.” Let’s talk about why AMS is so beneficial for your business.


Why Is AMS Beneficial for Your Business?

In specific, we want to talk about why it is beneficial to partner with an AMS provider instead of trying to cover it all by yourself.

First of all, let’s have a look at what keeps the IT department busy day-to-day so it is not able to focus on strategic issues like innovation technologies.

Drained IT resources - Application Management Services are key to free up internal resources.

It is clear that these day-to-day tasks make it harder to concentrate on strategic topics in order to keep up with competitors.

With that in mind, we can now talk about the benefits of AMS:

1. Your IT Will Be Enabled to Be More Strategic and Less Tactical

AMS providers understand the need to enable your IT organization to be strategic and focused on driving more value from your SAP solution. A good AMS partner frees up your internal IT resources, also aiming at enabling your team and organization to leverage the full potential out of your SAP solutions.

2. Your Business Needs Will Be Met by Tailored AMS Solutions

As your business and IT needs change, your AMS partner adapts to meet your demands. You can work together to define a right-sized and right-shored delivery model for your organization’s specific needs. The wide range of AMS solutions offer the possibility to tailor your own solution package as well as necessary skill set to fulfill your requirements.

3. You’ll Get Round-the-Clock Assistance for Your Applications

IT departments that make use of AMS get expert SAP assistance on-demand, in any functional or technical area, and often without the need for travel. Services are easy to access, easy to work with, and always available.


Choice of AMS Provider

When choosing your AMS partner, you should take a closer look at a few things in order to find your perfect match.

A good AMS provider will provide deep SAP expertise, along with an in-depth understanding of your IT infrastructure and processes. This will be the key to turn SAP into a strategic tool moving your business transformation forward.

Next to technical SAP expertise, the AMS provider should moreover deliver industry expertise to understand the company’s specific needs and to have the ability to add immediate value.

Another important thing is the delivery model. Find an AMS partner that offers a value-based contract model that provides deployment flexibility and demand-driven consumption, with the ability to roll over unused capacity options and level monthly billing throughout the term of the contract.

Your AMS provider should also provide value-add services, such as reviewing new releases and enhancements functionality, with recommendations tailored to your specific business needs and aimed at keeping you current on the technology curve.


Outsourcing application management can help your business make a big leap towards digital transformation. But not just any AMS provider will do. We, at NTT DATA Business Solutions, are driven to put together the perfect solution and skill set to meet your specific business needs. Let’s have a talk, get in touch!


Interested in More about AMS?

How to optimize IT operations? How to ensure efficient integration of IT systems? How to implement innovative technology? – AMS affects various areas in your business. Find out how you can benefit from AMS.

Go to our AMS service page

Bill Strasser
Bill Strasser
Senior Vice President, Managed Services, NTT DATA Business Solutions North America

Bill Strasser is Senior Vice President of Managed Services for NTT DATA Business Solutions. He has more than 20 years in a variety of industries, including Automotive, Manufacturing and Medical Devices, with a focus on building IT organizations that partner with the business to gain significant value from the SAP platform. His specialized focus is on SAP Application Management Services and SAP HANA Transformation. During his time with NTT DATA Business Solutions, he previously served in roles that include Application Management Operations, Managed Services Solutions and Innovations, Managed Services Pre-Sales, and Managed Services Customer Engagement. Bill holds a Bachelor of Arts degree in Business Information Services from the University of Cincinnati and a Master of Business Administration (MBA) degree from Xavier University.

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