In-house versus outsourced application management: making the right choice for your business

 

Deciding whether to manage your corporate ERP applications in-house or to outsource them can be a tough decision. Both options have distinct advantages and challenges, and the best choice often depends on the specific needs and circumstances of your business. Expertum explores the key factors you may need to take into account.

Staffing, a continuous challenge

Recruiting and keeping an in-house application management team requires significant efforts. Finding the right talent is difficult in today’s tight labor market. The process of recruiting, interviewing and hiring takes considerable time and resources, while retaining skilled employees afterwards can be equally challenging. Staff turnover requires training new employees and dealing with knowledge gaps which may disrupt your operations.

Outsourcing application management allows you to bypass these staffing challenges. Instead of worrying about hiring and retaining talent, you can rely on an external provider with a dedicated team of experts. As these providers have access to a broader talent pool, the right skills are always available to support your business.

Keeping up with innovation

Technology evolves at a breathtaking speed and staying up to date with the latest innovations can be daunting. For an in-house team, this means continuous learning and training. However, even with the best efforts, it's nearly impossible for one person or a small team to master every aspect of the rapidly evolving technology scene.

Outsourcing offers a significant advantage here. By partnering with an external provider, you gain access to a broad spectrum of expertise. Whether you need technical support, functional services or strategic planning, the right expert is just a phone call away. This flexibility ensures that you always have the most knowledgeable professional working on any specific need.

Fixed versus variable costs

A compelling factor to consider outsourcing is cost savings. In-house employees represent a fixed cost as you need to take into account salaries, benefits, training and more. These expenses add up and may represent a significant burden.

Outsourcing allows for a more flexible cost structure. You only pay for the services you need, when you need them. Not all external providers work like this, though, as some may propose a predefined set of SAP administration and support tasks into their standard service offering. However, with an à la carte approach, as offered by Expertum, you will not be paying for services that your business rarely uses, making for a more efficient use of your resources, especially if your application management needs vary over time.

Round-the-clock availability

In today's global business environment, application downtime can be costly. Ensuring 24/7 availability is crucial if your operations span different time zones or if you simply need your applications running smoothly around the clock. Obviously, maintaining an in-house team that provides round-the-clock support is challenging and expensive. It requires hiring additional staff and often high overtime costs.

In contrast, outsourcing providers are typically well-equipped to offer 24/7 support. Their teams are structured to provide continuous coverage, ensuring that your business applications are always up and running.

Increasingly complex and interlinked ERP systems

Gone are the days when businesses relied solely on one central ERP system. Today, critical business processes often span multiple cloud-based applications, each with their own set of complexities. The pace at which new cloud solutions are introduced is staggering and staying ahead demands constant attention. Supporting diverse systems requires vast knowledge and experience that can be hard to maintain in-house. Even businesses with well-established in-house teams often struggle to keep their knowledge and expertise up to date.

If keeping up with these changes feels overwhelming, outsourcing your application management may be the solution. Providers like Expertum specialize in staying on top of the latest technologies and best practices. Our teams work across various industries and systems, ensuring they bring the most relevant and up-to-date expertise to your business.

Finding the right balance

Both in-house and outsourced application management have their merits. In-house teams offer control and direct oversight, while outsourcing provides flexibility, expertise and cost efficiency. The right choice depends on your company’s specific needs, resources and long-term goals.

At Expertum, we understand that one size doesn’t fit all. That’s why we take the time to thoroughly understand your business before proposing a tailored application management solution. Whether you need full outsourcing or just occasional support, we offer a range of services designed to meet your unique requirements.

So if you’re considering your options, why not reach out to one of our experts? We’re here to help you navigate this important decision and find the best solution for your business. Read more about our application management services or get in touch.

Charlotte is here to listen.
Get in touch with her.

%firstName% is here to listen.<br />
Get in touch with %pronouns%.

About the author

Photo of Bert Vanstechelman
Bert Vanstechelman

Bert Vanstechelman is Chief Executive Officer at Expertum. He has more than 25 years of experience in SAP technical consulting, covering countless SAP versions in combination with all kinds of databases and operating systems supported by SAP. Bert specializes in platform migrations, SAP release upgrades, and SAP HANA conversions.

Read more articles by Bert Vanstechelman

Related articles