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Each of the approach is having its own advantages and disadvantages. Metro

Operators need to be very carefull in deciding any one this, as it is a crucial policy
decision and will greatly decide the feasibility of continuity in long run.

1.Completely outsourcing the operation and maintenance to a third party.

We have seen this model is gaining the momentum recently and operators are fully
outsourcing the O&M to a professional organisation who is having prior experience in

running the metro operation and maintenance.

Benefits: This approach is best suited for organisations who don’t want to involve in
the process of recruitment of personnel, their proper trainings and wants to have a

lean organisation.
This model gives the operator to focus on the other aspect like, non fare box revenue

collection, expanding the metro lines etc.

Drawbacks: This is the most costly approach and greatly dependent on the

outsourcing agency for the quality of services. Lack of flexibility in deployment of
advance technology in the maintenance process. Any addition of scope is a costly

affair.

2.Including the Maintenance ( Long term CAMC) as a part of system

deployment package.

Benefits: This approch ensures that the OEM along with the system deployment is

responsible for the maintenance of the systems on a long term basis. In most of the
cases operators approach the OEMs for CAMC after the completion of the DLP period

and OEMs usually charge huge amount because of their exclusive nature. A long term

maintenance contract with the OEM avoid this scenario. As the selection is usually
done on open tendering basis, a comparatively cost benefit can be achieved by

combining the long term maintenance in the system package.

Drawbacks: This approach requires upfront budgeraty allocation in the various
system packages.