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HP Rides Managed Print Services Wave
Using the recession as an opportunity, print major, HP has succeeded in printing its stamp in the nascent but exploding Managed Print Services (MPS) market By Srikanth RP, InformationWeek, December 23, 2009

Using the recession as an opportunity, print major, HP has succeeded in printing its stamp in the nascent but exploding Managed Print Services (MPS) market. A report by Springboard Research estimates the MPS market in Asia-Pacific (excluding Japan) to grow to US $1 billion by 2012. The Indian market is expected to be the fastest growing market in the region, with a CAGR of 22.6 percent.

HP is riding this demand, and has already signed more than 35 large contracts in the MPS space in India. “The global slowdown has forced CIOs to look within their enterprise to cut down inefficiencies, and ‘printing’ is one prime function that has been traditionally overlooked. There are huge opportunities for us for creating efficiencies in this space,” says Pierre Mirlesse, Vice President, Managed Enterprise Solutions, HP IPG, Asia Pacific and Japan.

Using statistics from analyst firms such as Gartner and IDC, HP is advising its clients in India on how enterprise printing, if not properly managed, can be a major drain on company resources. For example, according to IDC, companies spend as much as 10 percent of their revenues on document production, management and distribution. Similarly, research firm, Gartner estimates that up to 3 percent of corporate revenues are spent on office output such as print, copy and faxing.

Just like an ERP implementation, HP undertakes a detailed assessment of a firm’s printing and imaging environment and looks at how costs can be brought down, while improving overall efficiency. Paper and printing costs are analyzed and inefficient devices are replaced with more efficient energy saving ones. Similar to a server consolidation exercise, HP undertakes a device consolidation exercise where for example, networked MFDs could replace many standalone printers and copiers.  For improving workflow, the firm offers services such as enterprise document automation, record management and forms automation. Other tools such as the HP Access Control help organizations use smart cards to restrict access and monitor printing activities.  

With its portfolio of solutions in the MPS space, HP has seen increased demand in paper intensive sectors such as Insurance, Telecom, IT, Banking and the Government sector. That said, growth has primarily been seen in large enterprises and global MNC companies that have their operations in India. “Using services from third party MPS providers, enterprises can gain from process efficiencies while simultaneously gaining the ability to upgrade their infrastructure and reduce TCO,” explains Mirlesse. For example, using HP’s MPs, 3M saved a massive $3 million, while reducing its device count by 47 percent at a global level.

As the industry moves towards an OPEX model from a CAPEX model, the opportunity for players such as HP to take advantage of the renewed interest in pay-per-use models is huge. Mirlesse says that the only hindrance for his company and others in the MPS space is awareness. Once that happens, one can expect the MPS wave to extend beyond the boundaries of large Indian enterprises.

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