AMC Process: Types, Contracts, Benefits, and Maintenance
2025-09-19
AMC Process: Types, Contracts, Benefits, and Maintenance
If your company sells products that need ongoing care, a written service agreement—an Annual Maintenance Contract (AMC) ensures proper maintenance. Research from MarketsandMarkets shows that the global field service management market is projected to grow from $5.7 billion in 2023 to $10.3 billion by 2028, driven by the rising demand for proactive and preventive maintenance.Customers value the AMC process because it extends the life of their products, reduces downtime, and ensures faster support when things go wrong.
For service providers, AMCs guarantee planned and recurring revenue, predictable scheduling, and long-term customer trust.As a service provider, AMCs ensure that your entire year’s service is planned and scheduled, so you do not have to worry about your next appointment.
What is AMC Services and Why Do Businesses Use It?
An Annual Maintenance Contract (AMC) is a yearly agreement where a service provider is responsible for both preventive maintenance (regular check-ups to stop issues before they happen) and corrective maintenance (repairs when something goes wrong).
Why businesses use AMC Services :
- Reduce downtime with regular preventive checks.
- Save costs by avoiding unexpected repair expenses.
- Extend equipment life through timely maintenance.
- Ensure reliability with clear service level agreements (SLAs).
- Build customer trust by offering predictable, consistent service.
With AntMyERP’s AMC software , companies can automate contracts, receipts, renewals, and SLA tracking to make the AMC process faster and more efficient.A well-managed AMC Process ensures timely maintenance, reduces downtime, and improves asset.Companies can choose between two types of AMC contracts depending on budget and service needs.
What are the Types of AMC Services?
Service Businesses usually choose between two types of AMC contracts as part of their AMC Process:
1. Comprehensive AMC (Full Coverage)
- Covers both preventive and corrective maintenance.
- Includes labor and spare parts.
- Handles emergency service calls.
- It has a higher upfront cost, but there are no hidden charges.
- This works best for industries like healthcare and defense, where downtime is very costly.
2. Non-Comprehensive AMC (Limited Coverage)
- It only covers repairs, not spare parts.
- The contract cost is lower, but you pay extra for parts.
- This works well for businesses that already have their own maintenance teams.
Key Differences in Comprehensive AMC and Non-Comprehensive AMC :
Comprehensive AMC includes labor, spare parts, and emergency service.
Non-Comprehensive AMC includes only repairs. Spare parts cost extra.
What Does an AMC Process Contract Include?
An AMC contract explains clearly what services are provided and how. It usually includes:
- Scope of services: What is included and what is not included.
- Time period: Usually 1 year, with the option to renew.
- Payment terms: Monthly, quarterly, or yearly.
- Response time: How fast the service team will respond (SLA).
- Liability & insurance: Who is responsible for what.
- Termination clause: How either party can end the contract.
Common AMC documents include agreements for services, annual maintenance, or equipment coverage.
Key Benefits of AMC (Annual Maintenance Contracts) process for Businesses
1. Cost Savings
- AMC services reduce unexpected repair and replacement costs.
- Proactive maintenance avoids expensive emergency fixes.
2. Longer Asset Life
- Regular checks help machines, IT systems, and equipment last longer.
- They reduce wear and tear, so assets stay in good condition.
3. Predictable Service
- Scheduled maintenance stops sudden downtime.
- It helps businesses run smoothly without interruptions.
4. Customer Trust
- Clients feel sure their equipment is well maintained.
- This builds loyalty and stronger business relationships.
5. Efficiency with AMC Software
- AntMyERP AMC Software automates renewals, receipts, and SLA tracking.
- It makes maintenance simple and improves overall management.
How Different Industries Use AMC Process
Many industries use the AMC Process to keep machines and equipment in good condition.
Regular maintenance stops sudden breakdowns, saves money, and keeps work running smoothly. Healthcare, IT, Power Equipment, CNC, EV Industry , and Oil & Gas Industry rely on AntMyERP for effective AMC management.
Here’s how different industries use AMCs.
Healthcare:
- Hospitals depend on Asset Management Companies (AMCs) to ensure that medical devices are functioning properly.
- Suction devices and ventilators require regular inspections and maintenance.
- Machines like MRI scanners and ventilators need regular checks.
- Real-time monitoring helps stop unexpected breakdowns.
- This approach saves costs and extends equipment life.
According to WHO, around 50% of medical equipment in developing countries may be only partially usable, often due to lack of trained personnel or spare parts underscoring the importance of proper maintenance contracts. WikiPedia
Manufacturing
- Unplanned downtime costs manufacturers a lot of money.
- The AMC process helps by giving regular maintenance and quick support.
- With predictive maintenance, real-time data warns before a failure happens.This keeps work running smoothly and avoids surprise breakdowns.
IT & Telecom
- Server and network uptime is very important.
- AMCs make sure equipment gets regular maintenance.
- AntMyERP’s annual maintenance contract software automates schedules.
- This prevents disruptions and keeps work smooth.
Home Appliances
- AMCs give people confidence in their appliances.
- Regular maintenance helps appliances last longer.
- AntMyERP AMC software automates service schedules and billing.
Many businesses trust AntMyERP AMC Software to simplify maintenance and improve efficiency. Our customer says –
” AntMyERP has transformed our operations. The platform is easy to use, and setup was quick. We manage contacts, sales, and customer service all in one place. Custom features like e-invoicing save us time. Our team’s productivity increased by 60% thanks to workflow automation.”
AMC Process: Quotation and Checklist Documents
When companies offer AMC services, they usually share a few key documents:
- AMC Quotation: Shows the pricing for the service.
- Quotation Format: Breaks down costs in a clear way.
- AMC Checklist: Lists tasks to be done during maintenance visits.
These documents make the AMC Process simple and transparent. They help both the service provider and the customer know exactly what to expect.
How to Draft an Annual Maintenance Contract Agreement
A simple AMC agreement should include:
- Equipment details: Serial number, model, and warranty of the machine or device.
Example: A CNC machine, Model XYZ-200, Serial No. 12345, under 2-year warranty
- Service frequency: How often maintenance will be done.
Example: Monthly preventive check for an air conditioning system.
- Renewal terms: How and when the contract can be renewed.
Example: Contract renews automatically each year unless canceled 30 days before expiry.
- Payment schedule: When and how payments should be made.
Example: Quarterly payments for IT server maintenance services.
- Responsibilities of both parties: Tasks and duties of the provider and the client.
Example: Provider ensures timely maintenance visits; client provides access to equipment.
Businesses also combine equipment purchase agreements with equipment maintenance agreements to streamline asset management.
How Does AntMyERP’s AMC Software Help with the AMC Process?
AntMyERP AMC Software makes managing the AMC Process simple and efficient.
- Automated Contract Generation: Create comprehensive and non-comprehensive AMC contracts in minutes.
- Warranty & Serial Number Tracking: Keep track of every machine and equipment easily.
- Profitability Analysis: Monitor revenue and cost for each asset under AMC.
- Renewal Alerts & SLA Monitoring: Get notifications for contract renewals and track service-level compliance.
- Integration with Services: AMC integrates with after-sales service, RMA, and CRM for smooth operations.