In the IT world, businesses increasingly rely on Application Managed Service (AMS) providers. An AMS is much more than a phone number to call when a particular issue occurs. They ensure the continuous operation and optimisation of applications. The success of this partnership is tied to the establishment and maintenance of trust between the AMS provider and the customer. Trust is not just a soft attribute; it must be the foundation on which a secure, collaborative and successful relationship is built.
When evaluating service providers, trust must weigh heavily in the assessment process. According to a 2022 research report by Salsify, 46% of consumers are willing to pay more for a brand they trust.1 This sentiment directly impacts suppliers' revenue generation, as evidenced by PwC’s 2021 ‘Trust in US Business’ survey, which found that 71% of respondents would spend significantly less with suppliers they did not trust. The 2023 follow-up to the survey revealed that ‘the trust that businesses build with their stakeholders can boost profitability: 91% of business executives agree that their ability to earn and maintain trust improves the bottom line.’
While cost is undeniably significant in the evaluation process, trust is equally significant and often the deciding factor in the success of a business relationship. By prioritising trust alongside other considerations, we ensure that our partnerships are built on a foundation of mutual respect and reliability, leading to long-term success and growth.
Here are five factors critical to trust between the customer and their AMS provider:
1. Transparency and communication
Trust is intricately tied to transparency and effective communication. Customers need to stay informed about the status of their applications, any arising issues and the steps taken to resolve them. Transparent communication builds confidence and ensures that customers are active participants in managing their applications. For service providers, this means fostering a culture of transparency where mistakes are openly acknowledged, encouraging a proactive approach to addressing errors and implementing plans for improvement.
2. Security and data integrity
Trust is critical when it comes to data security and integrity. According to the PwC Trust survey when it comes to trusting a company, consumers are most likely to consider data security on par with high-quality customer service and products. AMS providers are entrusted with sensitive and valuable data. You must have confidence that your data is handled with the utmost care and that the service provider has robust security measures in place. A breach of trust in this area can have severe consequences, ranging from financial losses to damage to the organisation's reputation.
3. Reliability and performance
Reliability is a key factor in the IT world, where downtime can translate into significant losses. Customers rely on AMS providers to have reliable and high-performing solutions. Trust is established when the provider consistently delivers on their promises, meeting or exceeding service level agreements (SLAs). This reliability creates a sense of confidence that their applications will function optimally.
4. Adaptability and innovation
In an IT environment, adaptability and innovation must be consistently on the radar. Trust enables customers to be more open to embracing new technologies and methodologies suggested by the AMS provider. The customer must trust that the provider has the expertise to introduce innovations that enhance the efficiency and effectiveness of their applications without compromising security or stability.
5. Governance and relationship structure
Effective governance and well-defined relationship structures are instrumental in fostering trust. Governance frameworks provide a structured approach to decision-making, risk management and compliance, establishing clear expectations and guidelines. This transparency builds confidence, assuring customers that the supplier operates with integrity and accountability. The IT Infrastructure Library 4 (ITIL 4) talks heavily about ‘Value Co-Creation’ and how suppliers and customers must align to the same vision. These collaborative problem-solving mechanisms contribute to the development and maintenance of trust. Clear roles and responsibilities, as outlined in governance models, prevent misunderstandings and promote a sense of reliability. In essence, a well-structured governance framework combined with a thoughtfully designed relationship structure forms the bedrock for cultivating trust.
Now, it's your turn. Take a moment to reflect on your own experiences with your AMS providers. How has trust played a role in shaping your collaborations? Are there areas where you can strengthen this foundation?
Whether you're a business executive overseeing IT operations or an individual navigating the digital landscape, fostering and maintaining trust will be the key differentiator in the ever-evolving realm of technology.
Remember, as AMS providers prioritise and consistently deliver on building trust, they not only secure current partnerships but also position themselves as indispensable allies and trusted advisors.
Start by evaluating the trust dynamics in your partnerships today, and collectively shape a future where trust is the cornerstone of every successful collaboration in technology.
