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For years now, Applications Management Services (AMS) have been all about cost - driving down the expense base through offshore labor arbitrage. Further cost reductions, however, are getting hard to come by - as are needed innovations and process improvements. When applications are supported through a low-cost labor pool that's isolated from the business, efficiency, knowledge transfer and automation all suffer. To break the logjam, some companies are shifting their focus from service levels to value levels. Is that a wise course of action?.
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