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Perormance problem when two application running in Parallel

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Perormance problem when two application running in Parallel

Hi Experts , i need some help on Performance problems

I have a symantec LOG Backup which runs 7am,10am,1pm,4pm backups to different Server ( as per company rule we dont do sql server backups as we are having some space problems to backup locally or N/W share )
and we have a Daily process ( application process which runs 1:30 minutes ) which does lots of SSIS Packages dumping data from Flat files to SQL tables and Vice versa
also to different databses destinations on Same Server,some C# things and lot Stored processdues which does Select, Insert, update,Delete ( with where conditions on huge tables, cannot use truncate) combination 10-15 steps


When we run the appliocation at 8AM it runs in 1:30 minues and complete with no issues ,
but when we run Application during Symatec backup hours it is taking for ever to run , throws out with out error ,we had 20 minues timeline to Stored procedure to run and after that timeout if it is taking longer than 20 minutes.

I contantly monitored With Activity Monitor and found that , there is a Stored proceedure which is trying to do Select, Insert, update,Delete  and at the same time symatec was doing backup of log(ldf) and this is causing the stored proceduer to timeout
I cannot control the Aplication process schedule , we may have to run every 2 hours

I tried with :
Execution plan, profiler, database engine tuning advisor and some DMV and Added Indexes , tuned queries took out Order by clauses where ever not necessary also fyi NO jobs are scheduled to run between 7AM-10PM..
Tried SP_who2 'Active', found Symatec and the application i run are using CPU and DISK IO ...
 

I saw some places to
1.Restrict Auto filegrowth on LDF( it is set to autogroth to 10% unristricted growth)
2.Speed up tempDB ( MY D drive is having 500GB where tempdb mdf and ldf are residing and i dont see any problem with tempdb )
3.Change the recovery model to simple ( i cannot do that , its production and we need FULL recoverymodel and do Log backups)


Can any one suggeset me on what can i do to improve the performance here ....


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