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.