Prepress
Economy Driving Businesses Toward Partnering and Outsourcing to Control Document Spend, According to Pitney Bowes, InfoTrends Survey
Wednesday 08. July 2009 - Misconceptions about managed services also revealed
While the current economic recession has forced companies to re-evaluate their business models and overall document spend, it also has started to cause companies to shift their investments toward outsourcing and partnering to better control document costs, according to a survey of key business decision-makers by InfoTrends, Inc., prepared for Pitney Bowes Management Services, Inc. (PBMS), a wholly owned subsidiary of Pitney Bowes Inc. (NYSE: PBI).
Three times as many survey respondents indicated that they would increase their outsourcing investment rather than decrease it. In addition, the survey revealed that organizations are looking more closely than ever at potential partnerships in order to expand their market reach.
“While managing cost and risk remain top-of-mind for all organizations, especially in light of the current recessionary environment, businesses are beginning to realize now more than ever, the cost and efficiency benefits of managed or outsourced services that can be realized by partnering with the right outsourcing partner,” said Vincent De Palma, executive vice president and president, PBMS. “Outsourcing enables companies to focus on their core competencies and increase efficiency without making additional investments in people and technology. This helps companies become more profitable, and the use of experts in a particular area can lead to better service levels than internal departments can provide.”
Omri Duek, consultant, InfoTrends Professional & Managed Print Consulting Services, noted that “companies in all industries should consider their core competencies, especially in these tough economic times, and how managed or outsourced services can help support their non-core operations.” He explained the reasons organizations can benefit from managed services include: reducing up-front capital costs and/or operating costs, improving focus on their core business, increasing their agility (such as effectively scaling operations), adapting to a smaller workforce, looking to access best practices and technologies, wanting to improve consistency or service levels, and trying to meet environmental goals or compliance requirements.
Misconceptions About Managed Services
Despite their numerous benefits, misconceptions about managed services continue to exist. According to the survey, several myths still exist. For example:
Myth: Managed services arent secure
The reality is managed services are often more secure than self-managed processes. Managed Service Providers (MSPs) recognize the need for comprehensive security measures and guarantees. In fact, MSPs with expertise in highly-regulated industries such as financial services, manufacturing and healthcare are often certified and regularly audited by independent, industry-specific third parties.
Myth: Managed services arent cost-effective
Controlling capital costs (60 percent) and reducing operating costs (53 percent) were cited as the top two reasons companies today are outsourcing, according to the survey. Previous InfoTrends studies have verified that managed print services for example, can save organizations 20 to 25 percent of their document output costs, on average.
Myth: Managed services limit organizational control
For most organizations, managed services can actually provide greater control over business operations in the form of Key Performance Indicator (KPI) dashboards, greater cost visibility, and contracted Service Level Agreements. Also, managers can establish a single, contractually obligated contact to mitigate performance issues in a timely manner, and managed services enables organizations to quickly scale processes up and down. This agility was critical for business leaders in the study, with 87 percent of respondents indicating that this priority had increased in the past 12 months.