Output Outsourcing in the General Office

Transcription

1 These materials can be reproduced only with Gartner s written approval. Such approvals must be requested via quote.requests@gartner.com.

2 Strategic Planning Assumption By year-end 2004, 60 percent of enterprises will outsource some part of their document output needs (0.8 probability). Page 1

3 Output Management Blind Spots Few know exactly what equipment they have Few monitor supplies or post-acquisition spending Organizational responsibility is fragmented Not perceived as a serious problem or concern Most pay only intermittent attention to output fleets Page 2

4 Key Trends Key Trends Convergence MFPs color Focus on immediate cost savings Organizations are asking for outsourcing Move paper workflows to digital New vendors are expanding services Most organizations are using digital devices in some form, but they may not be realizing their maximum benefits. The difficult economy has everyone looking for immediate cost savings. Awareness of outsourcing has grown to the point that our client inquiries have become fairly consistent in their desire to understand what is available. As enterprises struggle to cope with these changes, they often turn to vendors that are capable of quickly providing a solutions -based answer rather than vendors attempting to sell point products. Vendors that are capable of integrating software and hardware in support of various applications will clearly be in demand, as will outsourcing vendors that can provide comprehensive approaches to all these requirements, either independently or through partner relations. Page 3

5 What Is Office Output Outsourcing? Offloading the management and servicing of print, copy and fax/scan in the office Utilize external expertise for the management of mature and emerging technologies and services Partnering with a trusted vendor that will begin driving device management efficiencies that lead to automation or improvement of the document management process Page 4

6 Output Outsourcing Continuum Outsource CRD Help Desk Tech Support Facilities Management Mailroom In-House Self- Serve Buy Printers, Cartridges and Others Depot Repair Break/Fix Full Service Page 5

7 Tactical Guideline: By 2002, all midrange, network-attached, hard-copy document production devices will be digital multifunction-capable devices. Are MFPs the Answer? Digital Copier Network Printer Multifunction Systems Copy Print Fax Scan Let s talk about convergence. Copiers, printers and fax machines all offer different forms of imaging. Over the past several years, devices have been introduced that can combine these functions. The result is that the multifunction peripheral (MFP) appeared first in the production arena, then at the desktop, and is now in almost every output segment. Some people, particularly in the IS department, believe that an MFP represents another potential set of problems. Many people look at the MFP from the perspective of their organization and tend to be biased toward one function over another, instead of looking at this category of product as an imaging platform. By evaluating MFPs and the stand-alone output devices as simply devices that can create or capture an image, organizations can eliminate many of the emotional issues that may crop up in this area. Many enterprises will not solve the issue of consolidating output fleets until they solve the organizational issues. These organizational issues typically prevent the output fleet issue from being approached in a nonpolitical manner. Action Item: Assess your current output providers on their MFP capabilities and directions. Page 6

8 Rising Speeds, Falling Costs Page 7

9 Strategic Planning Assumption: By the end of 2004, 70 percent of all office output equipment will be procured using a leasing arrangement based on usage as an alternative to purchasing equipment (0.8 probability). To Save, Buy Pages, Not Devices Traditional Product Purchase Service Purchase To whom it may concern: The purpose of this letter is to thank you for your business over the past year. VP Marketing Capital Costs Cost per Page Maintenance Costs Supplies Costs As the pace of technological change continues to increase, enterprises need to acquire technology, but that technology will soon be replaced by improved technology available at a lower price. In the past, the common acquisition practice was to purchase and depreciate devices. Plunging prices, however, will force enterprises to examine alternative acquisition techniques. These will involve some form of cost-per-page leasing. Depending on the device type and client preference, the structure of the leasing agreement will be based on time or usage. In either case, one contractual clause that enterprises should seek is a technology change as opposed to a technology upgrade if there is any question about the direction of the enterprise s need. Action Item: Enterprises should evaluate buying the product of the printer in lieu of purchasing or leasing a printer. Page 8

10 ACCOUNTS RECEIVABLE LEDGER ACCOUNTNO. SHEETNO. DATE INVOICE NUMBER/DESCRIPTION CHARGES CREDITS BALANCE BALANCE FORWARD ACCOUNTS RECEIVABLELEDGER ACCOUNT NO. SHEETNO. DATE INVOICE NUMBER/DESCRIPTION CHARGES CREDITS BALANCE BALANCE FORWARD Output Outsourcing in the General Office Digitization of the Workflow Paper Digital A lot of work has gone into network infrastructure, business-to-business application development and so forth. While many organizations have made the transition from paper to electronic, many others are still driven by paper documents. Gartner has written a lot of documents regarding the impact this will have on major verticals such as banking and financial services. This is not rocket science, but it does take focus and commitment. Page 9

11 Document Cost-Saving Model Revenue Growth Business Solution Time and Effort Process Optimization Solution Management Optimization 45% 30% Alignment With Business Automation and Centralization Product Optimization 25% Consolidation and Standardization Technical Solution Product optimization, fleet management, balanced deployment, right-sizing, call it what you will, it is the beginning, the starting point for looking at savings. Vendors have assisted many enterprises in this effort with sizable savings, mostly through improved device utilization. Page 10

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13 Which External Factors Most Influenced Outsourcing Vendor Selection: 55% Wordofmouth 54% Outsourcer s reputation 48% Outsourcer s technology partnerships 50% Recommendation from industry influencers Page 12

14 Drivers of Outsourcing Growth The degree of decision-maker confidence The pace at which services vendors generate demand by creating compelling innovation using already-available IT Page 13

15 What Are Other Enterprises Doing? Clients that outsource their desktops, networks and servers now are asking if they can include printers, copiers and MFPs Some are confused about outsourcing or don t know how to sell the idea internally What are other enterprises doing about office outsourcing? For some it is a natural extension of their current outsourcing of desktops and so forth. They are asking which vendors are committed to outsourcing and which should be on their shortlist. Some are confused about office outsourcing. It is one thing to outsource production printing, since it is typically an isolated activity. Or the central reproduction department (CRD) or mailroom can be seen as a self-contained activity. But when they think of outsourcing their printers, copiers, fax, scanners and MFPs, then they get scared. Page 14

16 Nine Steps to Successful Outsourcing 1. Understand the enterprise s business goals and directions Proactively seek input 2. Inventory the current environment Equipment, supplies, services and resources 3. Develop or update the sourcing plan That includes requirements and resources by type and function 4. Develop baseline costs Allows objective analysis Page 15

17 Nine Steps to Successful Outsourcing 5. Develop objectives Provide guidance in selecting good candidates for outsourcing 6. Determine corporate approach and management skills Consistency with policy and presence of skills to manage outsourced function 7. Determine asset transfer requirements What the enterprise is willing to transfer and its value 8. Determine performance requirements The desired price and desired performance levels, not the technology, with enforceable SLAs Page 16

18 Nine Steps to Successful Outsourcing 9. Carefully construct the outsourcing contract While there is still some leverage, recognizing that mergers and so forth can complicate the arrangement Page 17

19 Recommendations Evaluate and assess your office s output needs to see if it is a candidate for outsourcing Understand and know your output volumes and costs before beginning the process of selecting an outsource vendor Use Gartner Dataquest s nine-step guide to office output outsourcing Page 18

20 These materials can be reproduced only with Gartner s written approval. Such approvals must be requested via quote.requests@gartner.com.