The managed print services market continues to gain momentum as enterprises seek to tackle escalating print costs, according to a Quocirca report. Nearly 51 percent of organisations (either already using or planning to use managed print services) indicating they plan to increase expenditure on managed print services (MPS) over the next year.
Quocirca estimates that almost 50 percent of large enterprises (over 1,000 employees) are now using some form of MPS. Overall, a further 20 percent are planning 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. "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," believes the market research firm.
On average, organisations have been using MPS for 3 years with an average of 23 locations and 6 countries covered by an MPS contract. The majority (64 percent) are in the second phase of their engagements. Overall, 70 percent operate a multivendor fleet managed by a single MPS provider (mixed fleet) reflecting the need for strong multivendor support capabilities at the outset of any MPS contract. However, almost 80 percent indicate that they intend to consolidate on a single brand.
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. The market is characterised by a tightly packed group of leaders -- Xerox, HP, Ricoh, Lexmark and Canon. “Xerox is well-established within the MPS market – proven again by its sixth year leading the pack," the analyst firm adds.
Quocirca
Currently, the majority of respondents indicated that they use a hybrid MPS approach, retaining some print management tasks in-house. However, the fully outsourced approach is the one paying the most dividends.
Overall, 90 percent of those using a fully outsourced service are satisfied or very satisfied with the management and performance of their print infrastructure, compared to 68 percent of those taking a hybrid approach. In fact, while overall respondents reported an average saving of 26 percent on the cost of printing over the past year through using MPS, it is those using a fully outsourced approach that report the highest savings. Almost 40 percent of this segment indicates savings of over 30 percent compared to 24 percent of those using a hybrid approach.
Security and cost are top drivers for MPS. Overall, for the first year, security has risen to the top of the agenda with 75 percent indicating that this was an important or very important driver. Document security was rated the highest by professional service and financial sector respondents with government, despite their heavy reliance on printing, paying it the lowest priority.
While cost remains a top driver - particularly amongst organisations with more than 3,000 employees and those in the professional services and financial sector.
Overall, 72 percent of respondents indicated that they have some paper free processes and are planning more. For those already using MPS, this rose to 74 percent compared to 57 percebt that have yet to start MPS. So how well is MPS faring when it comes to helping organisations transition to digital workflows.
Quocirca's survey revealed that 37 percentof organisations have a well-defined strategy that maximises the benefits of smart MFPs, with 50 percent indicating that they understand the value of smart MFPs and are starting to exploit them. Notably, 46 percent of MPS users have a well-defined MFP strategy compared to just 14 percent of those that are yet to begin their MPS engagement.