24 May SAP Application Managed Services
Article originally from https://www.linkedin.com/pulse/sap-application-managed-services-frank-magliozzi/
NOT all Application Managed Services are the same!
In this and follow-up articles I aim to cover my experiences with Application Managed Services (AMS) from On-Shore vs Off-Shore, Technical / Functional, Tools, Services offered, SLA’s, Security, Insource or Outsource, Cloud or On-Premise and of course $$$$ PRICE $$$.
ON-SHORE VS OFF-SHORE
On-Shore Vs Off- Shore, this generally translates to price over quality. On-shore AMS provides a better cultural fit, a more personable relationship but at a premium, whereas Off-shore offers more resources, around the clock coverage at a lower price!
Generally, these two offerings are mutually exclusive. The Utopian service would be a hybrid offering, where services that require interaction with the customer would be handled On-shore and utility services that required little or no interaction would be handled Off-shore.
In my experience AMS is sold as a hybrid but invariably ends up being wholly Off-shore. It’s only toward the end of the contract that the scales are tilted the other way, especially when contract renewal is at play!
I’m finding that the Off-shore, price conscious services are no longer flavour of the month. Australian businesses are opting to On-shore more and more. Australian AMS providers are becoming more competitive through use of tools and greater efficiencies in the way we run these services.
Security concerns will drive more customers to On-shore, especially with the impending GDPR tsunami that’s about to hit the world!
It is companies that model their offerings to take advantage of the benefits of both models that will be the winners. They will be able to provide their customer the best of both worlds high quality services at an appropriate price point $$$.
Look out for my next instalment in this series…