Output Outsourcing in the General Office

Peter J. Grant

By year-end 2004, 60 percent of By year-end 2004, 60 percent of enterprises will outsource some part enterprises will outsource some part of their document output needsof their document output needs(0.8 probability).(0.8 probability).

Strategic Planning Assumption

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 tooutput fleets

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

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

Self-Serve

FullService

Outsource

In-House

Buy Printers,Cartridges and

Others

DepotRepair

Help Desk

TechSupport

CRD

Mailroom

FacilitiesManagement

Break/Fix

Output Outsourcing Continuum

Digital Copier

Network Printer

Multifunction Systems Copy Print Fax Scan

Are MFPs the Answer?

Rising Speeds, Falling Costs

Supplies Costs

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for your business overfor your business overthe past year.the past year.

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Traditional Product Purchase

Service Purchase

Maintenance Costs

Cost per Page

Capital Costs

To Save, Buy Pages, Not Devices

Digitization of the Workflow

DigitalPaper

ACCOUNT NO.

SHEET NO.

ACCOUNTS RECEIVABLE LEDGER

DATE INVOICE NUMBER/DESCRIPTION CHARGES CREDITS BALANCE

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ACCOUNT NO.

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Document Cost-Saving Model T

ime

and

Eff

ort

Technical Solution

BusinessSolution

30%30% Automation andCentralization

SolutionManagementOptimization

25%25%Product Optimization Consolidation and

Standardization

45%45%ProcessOptimization

AlignmentWith

Business

Revenue Growth

Which External Factors Most Influenced Outsourcing Vendor Selection:

55% — Word of mouth

54% — Outsourcer’s reputation

48% — Outsourcer’s technology partnerships

50% — Recommendation from industry influencers

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

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

Nine Stepsto 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

Nine Stepsto 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

Nine Stepsto Successful Outsourcing

9. Carefully construct the outsourcing contract — While there is still some leverage, recognizing that mergers and so forth can complicate the arrangement

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

Output Outsourcing in the General Office

Peter J. Grant