Third Party Maintenance - Reducing IT Costs for Manufacturers

by XSI on March 1, 2017

Manufacturers have the daunting task of managing many moving parts within their day-to-day operations. Whether it is tracking raw materials and inventory levels or the logistics of moving output from point A to point B, the IT infrastructure is often complex and interconnected. With such intricate IT systems, keeping them well-maintained and in working order is of the utmost importance, even for a small manufacturer.

Large-scale manufacturers, across a wide range of industries, are leveraging the cost savings that providers can offer and slashing their IT budgets by at least 25 percent.

In a recent Accenture case study, the benefits of pursuing services helped a leading consumer packaged goods manufacturer achieve an IT cost savings of 52 percent. Similarly with enterprise resource planning (ERP) software, having qualified and certified technicians within an arm's reach around the clock, is essential in the event that a malfunction or outage occurs. Many OEMs provide lackluster technical support and will often not service any IT asset without a contract number. In most cases, a large manufacturer could have dozens of OEM contracts at any given time and identifying the one contract number to start a service request takes time, minutes that can mean the difference between an unnoticeable outage and a news-making shutdown.

Business consultants are recognizing the need for a shift away from OEM service agreements. In fact, Accenture found what is commonly occurring in the manufacturing industry knows as redundant contracts, covering the same IT assets with some of the company’s most critical assets being left uncovered under a service agreement. As a result, manufacturers are overpaying, but remain overexposed to potential IT failures.

To realize a higher IT ROI and to eliminate the lengthy service time, leading manufacturers are moving away from traditional OEM service agreements and are exploring:

  • Hybrid service agreements - keeping newer components that require OEM-issued updates on current OEM agreements, but moving older IT assets that can be supported without the OEM to  providers.
  • Complete  -  moving the upkeep and repair of the IT infrastructure.

XSi is partnering with manufacturers, from across the globe, to help them make the transition away from OEM service agreements. Manufacturing IT systems with Cisco SMARTnet™, Juniper, Brocade, Dell, IBM, HP, SGI, EMC, or NetApp components can seamlessly be maintained under XSi.  

If your organization is looking for a proven solution to reduce IT maintenance expenses and tap into unparalleled customer support, contact XSi today at 1-877-548-2836 (US & Canada), 1-770-504-4891 (International), or visit our website at

Topics: third party maintenance, cost reduction, manufacturer

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