How to Choose an Application Management Service For HR

Mar 13, 2024

How-to-Choose-an Application-Management Service-For-HR-

Innovation drives complexity in our technology as our knowledge and methods improve, and our tools become more sophisticated. HR teams struggle to keep up with the maintenance load.

As a result, the application management services (AMS) industry is booming. We expect it to grow from $34.2 billion in 2022 to over $133.9 billion by 2030. Human Resources teams are turning to AMS to relieve their heavy administrative burden. HR pros are stressed and overworked, and 73% of HR teams are under-resourced.

What Are Application Management Services?

AMS refers to outsourced management and support of enterprise applications to a third-party service provider. A company may manage a firm's entire application portfolio or specialize, as we do, in a function like human capital management.

Each AMS provider offers a distinct, core bundle of services that supports each app and ensures your entire technology stack works as a system. In addition, each vendor may provide other services to meet each customer's unique needs.

Your services will vary based on your specific HR technology stack and requirements. While AMS can vary from provider to provider, at its core, AMS offerings typically include:

Application Maintenance and Support

This service ensures applications run correctly, mitigating risks and handling modifications on the go. It also includes planning, deploying, and testing vendor updates to keep your apps running on the best platform possible.

Helpdesk Support

Your AMS will handle system issues, incidents, and outages promptly. They will provide troubleshooting, root cause analysis, and resolution to minimize disruptions and will escalate issues to your software vendor if required.

Application Enhancement

AMS teams offer an efficient way to adapt existing applications as your business needs change. This helps ensure your in-house IT team isn't bogged down in application maintenance but can focus on efficiency and security.


Optimization services fine-tune and enhance applications and integrations to ensure peak performance.

Application Development

Your AMS will provide insights to your application development team to aid in designing, developing, and testing new applications to ensure they mesh well with your processes.

Development Support

When rolling out a new or updated application, the AMS team ensures the process goes well by assisting in the deployment process from planning to optimization and support, data integration, and integration governance.

Benefits of Application Management Services

There are multiple benefits to using AMS. Here are some of the core advantages:

Access to Expertise:

AMS providers have specialized expertise on tap to manage various application solutions. By outsourcing this service, you save on hiring and training internal staff.

Cost Reduction:

Employees are expensive because of payroll taxes, benefits, and training costs. You save money by paying strictly for the services provided.

Efficiency and Productivity:

AMS streamlines deployment processes, simplifies updates, optimizes performance, and ensures license compliance. Your efficiency and productivity will increase because your AMS team helps you optimize your data and workflows. And you can scale up and down as needed.

Improved Communication:

AMS facilitates seamless communication between teams and departments. It ensures that everyone agrees regarding application management.

Minimized Errors:

AMS providers monitor and manage applications, reducing the likelihood of errors. Regular software updates and testing prevent disruptions and issues.

Enhanced Security:

AMS providers prioritize security by managing access controls, monitoring vulnerabilities, and implementing tools to protect critical applications and sensitive data.

In summary, AMS helps companies overcome challenges related to maintaining IT applications, allowing them to focus on core business operations while benefiting from expert support and cost savings.

How to Choose the Right AMS Provider

It is essential that the provider fits your needs. Here are some core approaches and considerations to consider when selecting a provider.

Understand Your RequirementsHow-to-Choose-an Application-Management Service-For-HR-2

List the functions you want an AMS partner to provide and what you want to achieve.

Check Credentials

Be sure that potential providers have experience working with your applications. Look for certified providers in your software.

Determine Skills

Check the backgrounds and skills of the staff who will support your business. Some AMS providers use inexperienced staff but claim to have extensive expertise.

Explore Knowledge

Be sure any partner has well-documented policies and procedures, an accessible knowledge base, and strong relationships with your vendors.

Assess SLAs

Review suggested service level agreements (SLAs) to ensure they are performance-based and don't merely measure processes. Understand the stated performance indicators, penalties, and escalation procedures.

Consider Scalability

As your business grows and you add new locations and employees, you want an AMS partner who can accommodate that growth and continue to support your HR apps as needed.

Explore the Offerings Menu

You want a provider that offers an extensive array of services, allowing you to choose what you need and have a single provider for your technological support.

Evaluate Continual Learning

You'll want a partner who stays current with technological advances and trends, knowing how emerging technologies such as AI will shape your apps.

Analyze the Financials

Select a financially viable, stable partner with a proven performance record.

Understand the Costs

You'll want to understand all the costs, including hidden fees for some services. For example, whether your provider offers a flat service fee or a la carte plans.


One of the most crucial steps to ensuring the efficiency and value of your technology is leveraging application management services. Working together with a reliable AMS partner who knows your strategic needs can not only reduce costs and stabilize your operations but also boost your HR team’s productivity.

It makes sense from a business perspective, as the service delivers the powerful benefits of smooth-running technology, increased security, and support that never lets you down, delivering strategic value to your business.


About Pixentia

Pixentia is a full-service technology company dedicated to helping clients solve business problems, improve the capability of their people, and achieve better results.

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