Effective SAP Application Management Services (AMS) substantially influence a company’s success by ensuring systems and processes function seamlessly. Choosing the right location for an AMS provider is crucial, as there is no universal shoring strategy; the optimal choice depends entirely on a business's unique setup and requirements.
A guide titled Choosing an SAP AMS Partner: Eight Key Areas to Consider examined the advantages and factors of onshore, nearshore, and offshore SAP AMS while briefly touching on the concept of right shoring.
What is Right Shoring?
Right shoring involves positioning a business’s processes and operations in locations that offer the best mix of cost, service, and efficiency. For SAP AMS, this means leveraging a combination of offshore, nearshore, and onshore services to maximise benefits while minimising drawbacks.
Comparing Offshore, Onshore, and Nearshore AMS
Offshore AMS
Offshore AMS provides extensive global support coverage and a cost-effective method for resolving issues quickly, thanks to lower local labour costs. However, this approach might offer a less personal and consultative experience, potentially lacking insight into the local industry or market.
Onshore and Nearshore AMS
Conversely, onshore and nearshore AMS are more likely to ensure close alignment with the provider, offering more advisory support and local expertise. Nonetheless, this approach may present challenges for global support coverage and generally comes with higher hourly rates.
The Right Shoring Strategy
A right shoring strategy can help balance these approaches effectively. For instance, an offshore provider might handle affordable 24/7 support for less critical issues, while an onshore or nearshore provider could manage high-priority tasks, strategic planning, and expert advisory.
Key Considerations for Right Shoring
Making informed decisions about which aspects of SAP AMS to offshore and which to retain locally is essential. Key factors to consider include the complexity and importance of different ticket types, the need for specialised local knowledge, and the value of close collaboration between the internal team and the provider. By carefully assessing these aspects, businesses can align their AMS strategy with their goals, ensuring optimal efficiency and effectiveness.
For further information on SAP AMS and how specialised services can improve a shoring strategy, professional consultation is recommended. The Config Team can help.
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