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18
MPS
Security has become the number
one driver for MPS in enterprises
with more than 1,000 employees,
according to the new Quocirca report
Managed Print Services Landscape,
2015 – A vendor analysis of the
global enterprise MPS market
. In this
extract, Louella Fernandes and Clive
Longbottom examine enterprise MPS
adoption levels in the UK, US, France
and Germany and identify the main
priorities of senior IT managers with
responsibility for MPS. The full report,
including Quocirca recommendations
and vendor analysis, can be read at
Market overview
The managed print services market
continues to gain momentum as
enterprises seek to tackle escalating print
costs and drive greater business efficiency.
The market is relatively buoyant with 51%
of organisations that are either already
using or planning to use MPS indicating
they plan to increase expenditure on MPS
over the next year.
Quocirca estimates that almost 50% of
large enterprises (over 1,000 employees)
now use some form of MPS, with stronger
prevalence in very large enterprises. A
further 20% plan to use MPS within the
next year, reflecting the growing maturity
of the market.
Whilst broader workflow solutions are
proving to be a significant differentiator,
service delivery remains a key MPS market
driver. Quocirca believes that continued
investment to drive enhanced service
performance through predictive analytics
and focus on consistent delivery through
integrated back-end platforms is, ultimately,
what sets the leading providers apart.
On average, enterprise organisations
have been using MPS for 3 years, with
MPS contracts covering an average of 23
locations and 6 countries. The majority
(64%) are in the second phase of their
engagements; having optimised their fleet,
they are now implementing document
workflow tools.
Overall, 70% operate a multi-vendor
fleet managed by a single MPS provider
(mixed fleet), highlighting the need for
strong multi-vendor support capabilities
at the outset of any MPS contract.
However, almost 80% indicate that they
intend to consolidate on a single brand.
Operating a standardised fleet offers a
range of efficiency benefits for both IT
management and end-users. Clearly, those
MPS providers that are able to offer the
broadest hardware portfolio are best
positioned to address the diverse printing
and imaging needs of large enterprises.
Currently, the majority of respondents
use a hybrid MPS approach, retaining some
print management tasks in-house. However,
a fully outsourced approach pays the most
dividends. Overall, 90% of those using a
fully outsourced service are satisfied or
very satisfied with the management and
performance of their print infrastructure,
compared to 68% of those taking a hybrid
approach. In fact, while respondents
reported an average saving of 26% on the
cost of printing over the past year through
using MPS, those using a fully outsourced
approach achieved the highest savings.
Almost 40% of this segment reported
savings of over 30%, compared to 24% of
those using a hybrid approach.
With a fully outsourced approach,
organisations can achieve significant cost
efficiencies, and the scale and experience
of the MPS provider can go beyond what is
available from internal resources. It can also
Security now
primary driver for
enterprise MPS
enable an organisation to drive innovation
and change by freeing up internal IT staff
to spend time on development projects
that are more closely aligned to achieving
business objectives. Whilst a hybrid
approach can help an organisation retain
some level of in-house control, it requires
robust governance to ensure efficiency and
consistent service level quality.
Security and cost are top drivers
For the first time, security has risen to the
top of the agenda, with 75% indicating
that this was an important or very
important driver (average score of 4.01 out
of 5). Document security was rated highest
by professional service and financial sector
respondents, with government, despite
their heavy reliance on printing, giving it
the lowest priority.
Unsurprisingly, cost remains a top
driver, particularly amongst organisations
with more than 3,000 employees and
those in the professional services and
financial sectors. Despite many of these
organisations transitioning to digital
processes, the cost of printing is still a
key challenge, which they are looking to
mitigate through MPS.
Service quality follows closely behind;
improving service levels through better
governance, SLA quality and reporting and
analytics is now a key differentiator for the
top MPS providers.
Larger enterprises are also more likely
to be using MPS to cut paper usage and
reduce environmental impact. MPS has a
strong role to play here and, increasingly,
leading MPS providers are looking at this
from a holistic view at the outset of every
MPS engagement. With the appropriate
workflow solutions and services supported
by the latest smart MFP technology, MPS
can help organisations make strong inroads
in automating workflows and reducing
wasteful and inefficient paper processes.
Tackling paper to digital workflow
Overall, 72% of respondents indicated that
they have some paper-free processes and
are planning more. For those already using
MPS, this rose to 74%, compared to 57%
that have yet to start MPS.
So how well is MPS faring when it
comes to helping organisations transition
to digital workflows?
A key consideration is the smart
multi-function printer (MFP), which, when
effectively utilised, is the foundation for
bridging the paper and digital gap. With
sophisticated document capture and
routing capabilities, these devices can
integrate directly with enterprise content
management (ECM) and other systems,
Continued...
Louella Fernandes,
Quocirca
The cost of
printing is
still a key
challenge,
which
enterprises
are looking
to mitigate
through MPS.
