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Learn about the benefits and trends of outsourcing document output needs in the general office. Discover how to optimize device management and automate document processes with trusted vendors.
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Output Outsourcing in the General Office Peter J. Grant
By year-end 2004, 60 percent of enterprises will outsource some part of their document output needs(0.8 probability). StrategicPlanning 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
Output Outsourcing Continuum Outsource CRD Help Desk Facilities Management Tech Support Mailroom Break/Fix Buy Printers, Cartridges and Others Depot Repair In-House Self-Serve FullService
Are MFPs the Answer? Digital Copier • Multifunction Systems • Copy • Print • Fax • Scan Network Printer
CapitalCosts Cost per Page Maintenance Costs Supplies Costs To Save, Buy Pages, Not Devices Traditional Product Purchase Service Purchase To whom it may concern: The purpose of thisletter is to thank youfor your business overthe past year. VP Marketing
Digitization of the Workflow Paper Digital
Alignment With Business Process Optimization 45% Solution Management Optimization Automation and Centralization 30% 25% Consolidation and Standardization Product Optimization Document Cost-Saving Model BusinessSolution Revenue Growth Time and Effort Technical Solution
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