Application management (AM) is seeing rising activity, as it is increasingly perceived as a quick and simple way to achieve cost benefits. PAC estimates that stand-alone SAP AM expenditure grew by 8.6% in 2008, and forecasts a CAGR of 8.4% between 2008 and 2012.
Consolidation and standardisation of disparate, heterogeneous application landscapes has been a key driving force for offloading AM to external providers.
Increased M&A activity will give way to increased need for integration and standardisation.
The downturn of the economy will further encourage organisations to more seriously consider AM as they are under intense pressure to cut costs and utilize scarce resources. This will in turn drive the use of offshore resources, as customers are attracted to the significant potential savings from handing over the less critical applications to third-party suppliers that have established presence in low cost countries.
The UK SAP AM supplier marketplace is highly competitive. Steria's acquisition...