Research shows managed print services can reduce buried expenses by 30%, freeing up IT resources
Uxbridge, UK, July 27 2011 - Recent research by global research firm IDC says businesses that tackle five “hidden” costs stand to reduce enterprise printing costs by up to 30 percent, freeing up money to fund other IT projects.
The Europe-wide research was presented during executive roundtables hosted by Xerox in association with IDC in June in London and Manchester. According to IDC, printing costs typically consume 1 to 3 percent of a company’s annual revenues, and most organisations are unaware of this spend. IDC said the ability to control printing costs often lies in five areas not always perceived as print-related:
- Storage / Footprint
- The IT service desk
- Procurement and administration
- Environmental sustainability
- Organisational productivity
“Organisations that fail to understand their total enterprise printing costs miss a significant opportunity to cut overhead and liberate funds for innovation and business transformation initiatives,” Martin Canning, Group VP, European Consulting for IDC EMEA told the assembly. “Since that level of print management usually is not a core competency, outsourced managed print services offer the best solution for companies challenged with getting more out of constrained information management budgets.”
Organisations often focus on reducing direct print costs – commercial printing hardware, maintenance and supplies – which account for only a fraction of the total cost of printing. Also identifying the hidden costs and engaging a professional MPS supplier can reduce overall print expenditure by up to 30 percent, releasing IT budget and time to focus on urgent IT projects.
Over 65 attendees including CIOs and IT directors were present at the two half-day events, “Cost Saving and Innovation: How to Deliver Both,” part of the Xerox Real Business Live event series.
At the London event, Fred Lynch, client partner, BT, described how as part of the ‘Transform Sandwell’ project, Sandwell Metropolitan Borough Council is reducing its printing costs by up to 30 per cent in a five-year managed print service agreement with Xerox. Transform Sandwell is a 15-year partnership between Sandwell Metropolitan Borough Council and BT to transform front and back office services of the Council including customer services, finance, HR, payroll, procurement.
“The initiative with Xerox and BT not only saves the council a significant amount of money immediately, but will ensure controlled and managed costs over the lifetime of the agreement. The partnership’s joint expertise gives great confidence that the Council’s crucial cost-reduction, service and wider business objectives are delivered.”
Xerox is a global leader in managed print services placed by Gartner, Inc., in the Leaders Quadrant in the 2010 Magic Quadrant for Managed Print Services Worldwide1. Xerox has also been recognised as a leader in IDC’s Worldwide and U.S. Outsourced Print and Document Services Forecast and Analysis2, IDC’s 2010 MPS MarketScape report3 and Quocirca’s European Vendor “MPS Comes of Age” report, 2010.
“With a still challenging economy, an ever faster pace of change in business and growing global competitiveness, enterprises need to compete by concentrating on what they do best,” said Amanda Abernethy Director & General Manager, Global Document Outsourcing, UK. “At Xerox, our core competency is performing the back office tasks that enable our customers to sharpen their focus on their real business.”
The London and Manchester events were two of 22 held by Xerox and IDC in 12 countries during May and June this year.
About Xerox UK
Xerox UK, the UK operation of Xerox Corporation, markets a comprehensive range of Xerox products, solutions and services, as well as associated supplies and software. Its offerings are focused on three main areas: offices from small to large, production print and graphic arts environments, and services that include consulting, systems design and management, and document outsourcing. Through ACS, A Xerox Company, which Xerox acquired in February 2010, Xerox also offers extensive business process outsourcing and IT outsourcing services, including data processing, HR benefits management, finance support, and customer relationship management services for commercial and government organisations worldwide.
Xerox also has manufacturing and logistics operations in Ireland, the UK and the Netherlands, and a research and development facility (Xerox Research Centre Europe) in Grenoble, France. For more information visit, www.xerox.com
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1Gartner, Inc., Magic Quadrant for Managed Print Services, Worldwide, Ken Weilerstein, Cecile Drew, Yulan Li
2IDC “Worldwide and U.S. Outsourced Print and Document Services Forecast and Analysis” Doc #224913, September 2010.
3IDC “IDC MarketScape: Worldwide Managed Print Services 2010 Hardcopy Vendor Analysis.” Doc # 222872, April 2010.