output outsourcing in the general office peter j. grant
TRANSCRIPT
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
To whom it may concern:
The purpose of thisThe purpose of thisletter is to thank youletter is to thank you
for your business overfor your business overthe past year.the past year.
VP MarketingVP Marketing
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
BALANCE FORWARD
ACCOUNT NO.
SHEET NO.
ACCOUNTS RECEIVABLE LEDGER
DATE INVOICE NUMBER/DESCRIPTION CHARGES CREDITS BALANCE
BALANCE FORWARD
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