Capgemini has announced its ‘Business Aware Application Outsourcing’ model.The consulting, technology and outsourcing services company says that the new approach, which combines software as a service (SaaS) and Web 2.0 elements, takes application outsourcing "beyond its traditional focus as an IT cost-reduction mechanism towards a business services focus and a platform for innovation".

Now that businesses are demanding that their CIOs drive more value from their IT, with systems that are managed and evolve in line with the business that they support, application management is becoming increasingly important as it is at the intersection of IT infrastructure and business processes. Capgemini’s application outsourcing service framework ties traditional services, such as applications management, testing and modernisation, with new offerings such as ERP utility and 'mashup' applications development.

Paul Spence, head of Outsourcing Services, Capgemini, said: “Our clients want an outsourcing partner who can not only help them to contain their IT costs, but also help them to take advantage of technology developments such as SaaS and Web 2.0 to deliver more flexible and responsive IT that evolves in line with their business needs. This helps companies effectively apply emerging technologies to create opportunities for business growth, while continuing to manage IT costs."