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With AO, companies are able to turn into a more industrialized model in a centralized low-cost country for the service. With this, funds can be released easily and they therefore help pay for investments in larger transformation programs. In the case of AO, companies can ask their suppliers to manage both the maintenance as well as transformational aspects so that a business is able to move ahead of competition in strategic areas of high added value. This is particularly useful for Original Equipment Manufacturers (OEMs). OEMs are often interested in outsourcing to more than one supplier so that they are able to meet stiff competition while innovating. Competition and innovation for the OEMs continue even after the bidding is over and throughout the contract's lifetime. At the same time, companies are provided with a best-of-breed approach where suppliers are selected depending on the value they can add in a particular business area. This paper from Capgemini develops a specific approach to IT outsourcing in manufacturing companies. This way companies are able to cover the entire lifecycle of transition, maintenance and transformation for applications and processes related to the manufacturing industry.
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