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Annual Maintenance Contract

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Annual Maintenance Contract

AMC, also known as the Annual Maintenance Contract, is an agreement between a company and a service provider to maintain the company and its assets, based on some terms and conditions. It is a bridge that connects the buyers and the suppliers because it provides the maintenance service to the buyers for their valuable products either on a nominal charge or for free of charge, respectively. AMC or Annual Maintenance Contract is a source through which the provider and the user are in a secure domain. It offers secure maintenance services for all the IT facilities, software, and hardware equipment like printers, desktops, laptops, desktops, smartphones, and other devices.

In addition to this, it enables productivity and reliability. AMC meaning is a mutual contract that enables the maintenance of the equipment and efficient IT services. This makes the users and providers assured enough to focus on facilities and offers rather than maintaining the organizational assets. Both users and providers focus primarily on the work rather than the other substitutes, such as organizing, maintaining, and securing the assets of the organization or firm provided. This assures the providers and the users a secure environment, enhancing productivity and potency to a great extent.

What does AMC (Annual Maintenance Contract) include?

Based on customer/organization need, most companies offer fundamental AMC's such as IT network report, status report, inventory management, resolution of inquiries, equipment management, system configuration, and many more.

Types of Annual Maintenance Contract:-

● Comprehensive Maintenance Contract (CMC) - A CMC is usually for one year and can be extended up to 3 to 5 years if the parties agree. It includes prompt service for repairs and replacements of faulty parts or machines. A CMC (Comprehensive Maintenance Contract) costs more than an AMC (Annual Maintenance Contract) because it includes the costs of the replacements on top of the maintenance service.

● Computerized Numerical Controls (CNC) - Maintenance of machines with computerized numerical controls (CNCs) requires special skills. Suppose a company does not have a specialized CNC maintenance team to take care of all CNC machines. In that case, it should enter into an AMC (Annual Maintenance Contract) with CNC machine manufacturers. These are the best individuals to contract with maintaining these machines.

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