Economy Driving Businesses Toward Partnering & Outsourcing to Control Document Spend, According to Pitney Bowes, InfoTrends S...
July 08 2009 - 8:30AM
Business Wire
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 aren�t
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 aren�t
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.
For a copy of a white paper entitled, �Fact or Fiction: 5 Myths
of Managed Services,� click here.
About InfoTrends
InfoTrends is the leading worldwide market research and
strategic consulting firm for the digital imaging and document
solutions industry. It provides research, analysis, forecasts and
advice to help clients understand market trends, identify
opportunities, and develop strategies to help grow their
business.
About Pitney Bowes Management Services
Pitney Bowes Management Services designs, implements and
operates solutions that provide enterprise clients with critical
communications, mail and document lifecycle services that result in
more effective, efficient and compliant business processes and
operations.
About Pitney Bowes
Pitney Bowes is a $6.3 billion global technology leader whose
products, services and solutions deliver value within the
mailstream and beyond. Founded in 1920, the company�s 35,000
employees deliver technology, service and innovation to more than
two million customers worldwide. For more information about Pitney
Bowes, its products, services and solutions, visit www.pb.com.
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