AMS – Low Value, No Return
Since we launched Preos the number of businesses unhappy with their application support provider has been a surprise. We know AMS (Application Management Service) is a race to the bottom on both cost and value but the volume of negative comment is astonishing.
Why is that the case?
AMS is designed to help companies deal with Break Fix issues, generally small ones that can be resolved within a day, sometimes 36 – 48 hours. The operational nature of the service means providers are focused on low cost and fast turnaround. Customers really want incremental improvement which they perceive, and are told, they will get through Break Fix. But the only real overlap between the service provided and procured is on break fix and cost management, which does not give incremental improvement. The customer is therefore left feeling dissatisfied.
AMS providers need to close out tickets quickly, due to Service Level Agreement targets, meaning they are not interested in the business issue behind the problem being resolved. This can lead to reoccurrence of the issue. It can even result in a fix causing other problems, especially if end to end impacts of a fix are improperly tested.
The customers desire not to have to pay too much, means the AMS provider is not incentivised to reduce case numbers.
Preos view is that the AMS operating model is destined to disappoint. The race to the bottom leaves everyone feeling dissatisfied.
My colleague Caroline Eder has been working with Preos customers to pilot a completely new way of supporting clients. In the run up to Workday Rising EMEA we will be publishing more about our plans.
Follow the Preos LinkedIn page for more information in the coming weeks.