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Equipment bills cut by outsourcing

Ian Grayson | August 26, 2008

AS many companies outsource the running of their computing infrastructures, growing numbers are adopting a similar approach to their printing equipment.

Already popular among Australia's largest organisations, the tactic is finding favour with mid-sized firms.

Keen to reduce costs and improve efficiencies, they're signing multi-year contracts with vendors and washing their hands of printer procurement and maintenance hassles.

Under most contracts, customers give up purchasing printing equipment and instead pay an agreed cost per page printed.

Ricoh Australia business solutions group manager Les Richardson says the trend, dubbed managed services, is a growing source of business for his company.

"Some customers are saying they want to work with us to have a printer fleet managed by our software tools," he says.

"Others are saying they want us to take care of the whole thing and just give them a report at the end of each period. The common thing across both groups is that they want more control."

Richardson says adopting a managed print approach can require a "cultural shift" in some companies, as infrastructures are streamlined and the types of devices in place are changed.

"Some staff will need to move from having personal devices to having utility rooms with a few larger machines," he says. "People can get a little territorial and it takes some time to explain the benefits of moving to this type of approach."

Fuji Xerox marketing manager Tom Lewis says a managed print services approach reduces risk for companies.

"They know they will only be paying for what they actually print," he says.

A managed infrastructure can be configured so printing activity is remotely monitored by the printer company, Lewis says.

Statistics from each machine are collated and the customer is presented with a single bill at the end of each period.

The simplicity of these systems means it is now possible for Fuji Xerox resellers to profitably offer managed services to much smaller companies than has traditionally been the case.

Lewis says there are now examples of managed services being provided to companies of only five or 10 people.

Even in small companies such a move can translate into savings and a more accurate picture of exactly what is being spent on printing. "A lot of people just don't think about how much their printing is costing," Lewis says.

"Research shows the total cost of printing and output can be about 5 per cent of a company's total turnover.

"In some cases this can be as much as the rent."

Lexmark marketing manager Stephen Bell says managed print services is a growing source of business for his company as more organisations come to understand the benefits.

"It comes down to focus, and putting your printing in the hands of someone who has that function as their core business," he says.

"Managed services allow specialised skills to come in, look at all the printing inside a company and find the best way to get it under control.

"A lot of companies do the first step, but then just sit around the table not sure what to do next."

Depending on the size and complexity of the customer's operations, Lexmark can either remotely monitor and manage printing devices or put staff into the premises to carry out all maintenance as required.

Bell says moving to managed services changes the relationship between printing vendor and customer.

"Traditionally you would sign a customer on a contract for four or five years and then renegotiate at the end of that period," he says.

"However, with services you sit down with them at the end of each quarter to track progress and see what can be done to improve performance."

Managed print services are also being offered by Canon, which can take control of everything from device selection and maintenance to consumable ordering and billing.

The service can even incorporate devices from other manufacturers.

Each device covered under a Canon agreement is remotely monitored at the company's customer care centre.

If a fault occurs, a nominated staff member in the company is notified and advised on how it should be fixed.

Consumable supplies can be ordered online and all billing details accessed through a specially designed customer web portal.

HP imaging and printing senior vice-president Christopher Morgan says a managed services approach to printing also appeals to many companies because they know they can take advantage of advances in technology as they become available.

"Rather than purchasing a printer or signing a long-term lease, equipment can be changed as requirements change," he says. "Printing resources can grow as a company's demand for them grows."

Morgan says he expects demand for managed services to continue to increase as companies get a better understanding of the benefits it provides.

"Just as other areas of technology are increasingly delivered as a service, so does it make sense for the same approach to be applied to printing," he says.

This article from: The Australian