Application Maintenance: Outsourcing 

Outsourcing has become a priority for companies because of the introduction of new technologies, increasing customer expectations, and regulatory demands, this has made keeping applications up-to-date and performing optimally a daunting task, which led to application management outsourcing.

If you’ve decided to outsource, then you’ve come to the right place. We’ve gathered everything you need to know about application maintenance outsourcing for you to check out.

Table of Content

What is Application Maintenance Outsourcing?

Benefits of Application Maintenance Outsourcing

Challenges of Application Maintenance Outsourcing

When to Outsource Application Maintenance

How to Choose the Right Outsourcing Provider

Work with FlairsTech

FAQs

What is Application Maintenance Outsourcing?

App maintenance outsourcing is when companies choose to outsource the ongoing support, maintenance, and improvements of applications to a third-party vendor. Research by the App Attention Span Study showed that nearly 90% of those surveyed stopped using an app due to poor performance; this can have long-term repercussions on customer loyalty and brand reputation, which highlights the importance of application maintenance. This includes a broad range of activities, including the following:

• Fixing Bugs: They identify and resolve software bugs or issues that affect the functionality of the application.

• Security Updates: They keep applications secure by applying patches, addressing vulnerabilities as they arise, and adding more proactive approaches.

• Performance Optimization: They ensure that applications run at peak performance through regular assessments and fine-tuning.

• System Upgrades: The application maintenance outsourcing company implements upgrades and enhancements to improve system features, integrate with other applications, or take advantage of new technological developments.

• Compliance Management: Companies ensure that applications remain compliant with regulatory requirements.

• Functionality Improvements: They add new features or modify existing ones to meet the changing needs of the business or to accommodate new technologies.

When companies outsource these tasks, they allow themselves to tap explore a wide range of specialized expertise, reduce overhead costs, and focus their internal resources on core business activities. In many cases, outsourcing also provides a strategic advantage by ensuring that applications remain modern, secure, and able to scale with the evolving needs of the business.

Benefits of Application Maintenance Outsourcing

There are a lot of benefits to outsourcing application maintenance, starting from cost savings to access to specialized expertise. We’ve gathered all these benefits for you to check out:

1. Cost Savings

The first and most obvious and compelling reason businesses opt for app maintenance outsourcing is the potential for significant cost savings. When companies have an in-house team, they are required to hire specialized staff, invest in training, and purchase the necessary infrastructure to support the applications. These costs can quickly escalate, particularly as businesses expand.

Outsourcing, on the other hand, can dramatically reduce these costs. A report by Deloitte found that businesses that outsource non-core functions like application maintenance can save between 40% to 50% on operating costs.

Application maintenance outsourcing providers have established teams and systems that are already in place, meaning they can provide services at a much lower cost than building an internal team. For example, outsourcing to vendors in lower-cost regions can result in significant savings without sacrificing quality.

2. Access to Specialized Experts

Outsourcing application maintenance gives businesses access to choose from a pool of experts with specialized knowledge in various technologies, platforms, and industries. Many vendors have extensive experience in maintaining applications, and this experience allows them to bring best practices, innovative solutions, and the latest technologies to the table.

Working in-house also gives you access to specialized experts; however, outsourcing allows for more flexibility as you’re not tied down to a specific group of people. This flexibility makes application maintenance outsourcing the better choice.

3. Focus on Core Business Functions

By outsourcing routine maintenance tasks, businesses can refocus their internal resources on more critical aspects of the organization, such as innovation, customer service, and business strategy. This allows internal teams to work on high-impact projects that drive business growth, rather than focusing on repetitive maintenance tasks that could be easily done with an outsourcing partner.

4. Improved Security and Compliance

Ensuring that applications are secure and compliant with industry standards is one of the most important aspects of application management outsourcing. Cybersecurity threats are becoming increasingly sophisticated, and the consequences of a data breach can be catastrophic.

According to research, it’s estimated that cybercrime costs will hit $10.5 trillion by 2025. This highlights the growing importance of applying strong cybersecurity measures to protect the business. Application maintenance outsourcing providers often have dedicated teams specializing in security and compliance, ensuring that applications remain up to date with the latest security patches and regulations.

A reliable outsourcing partner can help ensure that these regulations are met, reducing the risk of penalties or reputational damage.

5. Scalability and Flexibility

This is also one of the most popular benefits of an application outsourcing model. Scaling an in-house maintenance team can be a lengthy and costly process. If your business needs to scale down, it can also be a problematic process.

Application maintenance outsourcing, however, provides the flexibility to adjust maintenance levels according to demand. Whether scaling up to accommodate increased traffic or scaling down during periods of lower demand, outsourcing offers the adaptability businesses need.

6. Continuous Monitoring and Support

Most app maintenance outsourcing providers offer 24/7 monitoring of applications, ensuring that potential issues are addressed proactively to prevent problems. This constant check-up allows for quick identification of problems and fast resolution, minimizing the chances of downtime or disruptions.

By having external experts continually monitor the health of your applications, businesses can ensure maximum uptime and performance. This can also prevent application downtime, which can be costly. According to the Ponemon Institute, the average cost of downtime is $9,000 per minute.

Challenges of Application Maintenance Outsourcing

While there are many benefits, app maintenance outsourcing is not without its challenges. Businesses must carefully consider these potential drawbacks and take steps to help avoid these challenges to get the best outcome out of outsourcing.

1. Communication Barriers

Effective communication is vital to the success of any outsourcing relationship. Working with vendors in different time zones, regions, or even countries can introduce language barriers and cultural differences that may complicate communication. Delays in responding to requests or miscommunications can also lead to misunderstandings and inefficiencies.

Luckily, this challenge is easy to overcome. Businesses should establish clear communication protocols upfront with their application maintenance outsourcing provider. This can include regular video calls, well-defined points of contact, and project management tools that enable real-time collaboration and issue tracking. Being proactive in communication can prevent small issues from escalating into larger problems.

2. Data Security and Privacy Risks

One of the most alarming concerns when outsourcing is the potential risk to sensitive business data. With applications often containing confidential customer information, intellectual property, and financial data, businesses must ensure that their outsourcing provider has robust security measures in place.

To prevent this problem from happening and avoid risks, businesses should conduct thorough due diligence when selecting an application maintenance outsourcing vendor, ensuring that they have appropriate security certifications and a proven track record in safeguarding client data. Non-disclosure agreements (NDAs) should also be signed to protect sensitive information.

3. Loss of Control

Outsourcing application maintenance can mean that control over certain aspects of the application is not entirely yours and is shifted to an external provider. For businesses that are used to managing their systems in-house, this can lead to a sense of lost control.

To minimize this risk, businesses should develop clear service-level agreements (SLAs) that define the roles, responsibilities, and performance expectations of the application maintenance outsourcing partner. Regular reporting and transparent communication help ensure that the vendor is aligned with the business’s goals and objectives.

4. Vendor Reliability and Sacrificing Quality

Not all outsourcing vendors are the same. Some may not deliver the quality of service expected, leading to delays, poor-quality fixes, or unresolved issues. This is especially true if the provider lacks experience in the specific technologies or industries relevant to the business.

This is why businesses should perform due diligence on potential vendors, including checking references, evaluating past performance, and reviewing case studies. Running pilot projects or requesting a trial period can also help ensure that the application maintenance outsourcing vendor meets the required standards before committing to a long-term contract.

When to Outsource Application Maintenance

Not all companies need to outsource. It’s important that you know the right time to outsource application maintenance, as it is critical to making the decision beneficial for your organization. Here are some signs that it might be time to consider outsourcing:

1. You Have Limited In-House Expertise

The complexities that arise with applications as they grow make managing it in-house difficult. Many organizations struggle to keep up with the pace of technological advancements, leading to gaps in internal capabilities. In such cases, application maintenance outsourcing to a specialized provider can offer immediate access to a team of experts with the skills necessary to tackle complex issues.

2. Rising Costs of In-house Maintenance

Maintaining an internal team dedicated to application maintenance can be an expensive process. This includes recruiting skilled professionals, offering them ongoing training, and maintaining infrastructure like servers and tools. As technologies evolve, businesses also need to keep their teams up to date on new developments and ensure they have access to the latest tools.

The cost of maintaining an in-house team can be significant. According to research from Gartner, the total cost of ownership (TCO) for in-house software maintenance is often higher than that of outsourcing. Outsourcing application maintenance allows businesses to reduce overhead costs and take advantage of the cost efficiencies provided by the vendor’s existing infrastructure, tools, and specialized workforce. This makes it easier to save money while still having the highest level of service.

3. Your Company Needs 24/7 Support

Many modern businesses operate in a global environment, where systems must be available 24/7 to support international customers at any time of day. Maintaining constant availability requires round-the-clock monitoring and support, which can be difficult for in-house teams to manage, especially if they are limited by geographic constraints or resources.

Application maintenance outsourcing can provide the benefit of continuous support, where teams in different time zones ensure that issues are identified and resolved promptly, no matter the time. This 24/7 support model ensures high application uptime and swift response to emergencies, minimizing the risk of downtime and service disruptions.

4. You’re Scaling Up or Introducing New Features

Your software needs will continue to grow with your business, which might cause issues if you’re not prepared. New users, more data, and increased transaction volumes require applications to scale effectively. Additionally, your business may introduce new features or services that need to be integrated into existing applications. Scaling and integrating features often require specialized skills, especially when dealing with complex systems.

Application maintenance outsourcing provides the flexibility you need to scale maintenance services quickly, depending on your needs. A good outsourcing partner will be able to support your business’s growth, ensuring that your applications can scale smoothly to meet increased demand.

5. You’re Managing Legacy Systems

Many businesses rely on legacy applications that are integral to their operations. However, these systems are outdated and prone to performance issues, security vulnerabilities, and integration challenges. Managing these systems in-house often requires specialized knowledge and a higher budget that may not be available internally.

Application maintenance outsourcing can be particularly useful when dealing with legacy systems. External providers often have experience maintaining older software and can offer solutions to modernize these systems, extend their life cycle, and ensure they continue to meet business needs.

6. You Want to Focus on Core Competencies

Application management outsourcing allows businesses to focus on what they do best. Maintaining software applications can take up significant resources, including time, effort, and personnel. By outsourcing these tasks to a third-party provider, organizations can redirect their internal teams toward core business functions such as product development, customer engagement, and strategic planning.

This focus on core competencies enables businesses to innovate more effectively and remain competitive in their respective industries, which highlights the importance of application maintenance outsourcing.

How to Choose the Right Outsourcing Provider

Now that you’ve learned about the benefits, challenges, and if you need to outsource, it’s time to know what to do in order to choose a suitable provider. Choosing the right outsourcing provider for application maintenance is a critical decision that will directly impact the performance, reliability, and long-term success of your business applications.

With the wide range of service providers available, each offering different levels of expertise, service quality, and pricing, it’s essential to carefully evaluate potential application maintenance outsourcing partners based on a variety of factors.

1. Assess Technical Capabilities and Expertise

The most fundamental factor when choosing an outsourcing provider is their technical expertise in the field you’re working in. An effective app maintenance outsourcing provider should possess a deep understanding of the technologies and platforms that your business relies on. 

Additionally, check if the provider has the capability to handle all aspects of application maintenance, from bug fixes to performance optimization to security updates. Some vendors specialize in particular maintenance activities, so it’s important to ensure the provider’s scope of expertise aligns with your business requirements.

If you choose an application maintenance outsourcing partner that specializes in a specific field, you’ll end up having to work with different companies to cover everything you need.

2. Evaluate Industry Experience and Reputation

Industry experience is another crucial factor in selecting an outsourcing provider. Vendors with experience in your specific industry or with similar applications understand and expect the unique challenges you face and can offer tailored solutions. Choosing a provider that has handled similar clients can help ensure they meet your industry-specific needs.

Reputable providers will be happy to share examples of previous projects. These should demonstrate their ability to meet deadlines, achieve business objectives, and handle unexpected challenges effectively. This is one of the most important things to consider while choosing an application maintenance outsourcing provider.

3. Focus on Security and Compliance Expertise

When outsourcing application maintenance, particularly for critical business applications, security and regulatory compliance should be at the top of your priority list. As more businesses store sensitive customer data and adhere to strict regulatory guidelines, ensuring that your outsourcing provider is equipped to manage security risks and compliance requirements is crucial.

You should also make sure that the provider understands the industry regulations and sticks to them. Also, it’s beneficial to partner with an outsourcing provider that undergoes regular security audits by third-party agencies. Certifications such as ISO 27001 can offer additional assurance that the application maintenance outsourcing provider adheres to the highest standards of security and privacy.

4. Examine the Vendor’s Flexibility and Scalability

As your business grows or experiences changes in demand, your application maintenance outsourcing needs may evolve. A key consideration in selecting the right provider is the vendor’s ability to scale their services to meet your dynamic needs.

For example, if you expand your user base or add new features to your application, your maintenance needs will change, and the outsourcing provider must be able to adapt quickly. If you’re going through a quieter time, it’s important that your application maintenance provider scales down with you to avoid unnecessary costs.

5. Look for Cultural Fit and Communication Transparency

In order to have a successful partnership, it’s important to have an application maintenance outsourcing partner you can effectively communicate with. When outsourcing application maintenance, ensure that the provider’s communication culture aligns with your own. Cultural fit, responsiveness, and transparency are essential for collaboration, especially when working with remote or offshore teams.

Work with FlairsTech

At Flairstech, we provide application management services aimed at optimizing the performance and extending the lifespan of your applications, supported by our team of over 300 certified experts!

Focused on continuous improvement, we offer application maintenance outsourcing that enhances system efficiency by 40% and reduces operational costs by 30%, ensuring your applications run smoothly while remaining cost-effective. Our team manages a broad spectrum of applications, including web, mobile, desktop, enterprise, and cloud-based applications, as well as application programming interfaces (APIs).

Our proactive approach includes round-the-clock monitoring, timely updates, performance optimization, bug fixes, and security patches, all tailored to your specific business needs. Our commitment to excellence is reflected in our ISO 27001 and ISO 9001 certifications, demonstrating our adherence to global standards for information security and quality management in application services.

In addition, we are fully compliant with GDPR, ensuring the protection and privacy of your sensitive data. With Flairstech, you’ll have a reliable application maintenance outsourcing partner for secure, scalable, and efficient application management, helping your business stay competitive in an ever-evolving digital world.

If this interests you and you decide on outsourcing, contact us now and one of our experts will reach out to you as soon as possible to achieve the best results!

As technology continues to advance and businesses face increasing pressure to innovate and stay ahead of the competition, application maintenance outsourcing will play a pivotal role in helping companies optimize their operations, ensure the security and reliability of their applications, and position themselves for future success.

Frequently Asked Questions

1. What is application maintenance outsourcing?

Application maintenance outsourcing is the practice of hiring external service providers to manage and support the upkeep of your applications. This includes handling software updates, bug fixes, performance improvements, security patches, and ensuring the overall functionality of the application. Outsourcing these tasks allows businesses to focus on core operations while ensuring the application is well-managed.

2. Why should I outsource application maintenance?

It provides several advantages, such as cost savings, access to specialized expertise, and the ability to scale services based on business needs. It also ensures that your applications are continuously updated, secure, and optimized, helping your business stay competitive.

3. What are the benefits of application maintenance outsourcing?

The benefits of application maintenance outsourcing include reduced operational costs, improved application performance, enhanced security, and the ability to focus on your core business activities. Outsourcing also gives you access to skilled professionals, advanced tools, and best practices that help keep your applications running smoothly and efficiently.

4. How can outsourcing improve my application’s performance?

Outsourcing helps enhance application performance through continuous monitoring, optimization, and regular updates. A dedicated team of experts will focus on identifying performance bottlenecks, resolving them, and ensuring the application runs at peak efficiency. This leads to faster load times, better user experiences, and fewer disruptions.

5. What are the main challenges of application maintenance outsourcing?

Some challenges of application maintenance outsourcing include communication barriers, time zone differences, and aligning the outsourced team with your business objectives. However, these challenges can be mitigated by selecting a vendor with strong communication practices, clear project management, and a proven track record.

6. How do I choose the right outsourcing provider for application maintenance?

When choosing an application maintenance outsourcing provider, it’s important to consider their technical expertise, experience in your industry, security and compliance standards, scalability, and communication practices. Look for a vendor with a solid reputation, relevant certifications, and a proactive approach to managing your applications.

7. What services are typically included in application maintenance outsourcing?

Application maintenance outsourcing typically includes services like bug fixes, security patches, performance optimization, software updates, system monitoring, troubleshooting, and user support. Some providers may also offer additional services such as system upgrades, version control, and disaster recovery management.