FRAMINGHAM 12 OCTOBER 2010 - Managed print services (MPS) is undergoing an extreme makeover, according to IDC's study 'Asia/Pacific Managed Print Services 2010--2014 Forecast and Analysis: New Challenges in a New Economy'.
IDC predicts that the Asia Pacific (excluding Japan) or APEJ managed print services (MPS) market will grow at a compound annual growth rate (CAGR) of 17 per cent in the period 2010-2014.
The market will reach US$530 million in 2010 and surpass US$990 million in 2014. Emphasis now is more on services and to this end, vendors have begun to expand services offerings either in-house or via partnerships to bring MPS to the boardroom.
Consolidation of services
Enterprises in the APEJ region are inundated with new technology services such as cloud and IDC study indicates that in the short term, these businesses will search for consolidation of services offerings.
IDC has noted the blending of multi-tower deals in the information technology outsourcing (ITO) and business process outsourcing (BPO) services markets into single contracts. This blending has made IDC predict MPS to soon be integrated as part of such extensive contracts.
There has been a three-fold shift in how MPS is perceived by the market, says Suchitra Narayan, research manager for IDC's Asia/Pacific IT Services Research.
"Firstly, MPS is entering the boardroom via managed services and is gaining the CXO's attention. Secondly, it is no longer about services that you buy bundled with hardware; it is hardware that comes bundled as a services offering. Thirdly, with the shift to a services economy, there will also be an increased focus on channel-based MPS delivery. Channels will have to undergo a restructuring to ensure they build-out services capabilities and not just deliver and manage 'boxes'."
Strong growth in India and China
Depending on the political stability, IDC expects the MPS growth to be especially strong in China and India, assuming political stability in these markets. Narayan said enterprises in both the nations have begun to understand the need for implementing document-related solutions.
Businesses in India and China are especially interested in MPS because it makes significant impact on cost reduction via infrastructure optimisation. It also reduces energy and print-related costs. IDC also expects continued growth in Australia, South Korea and Singapore in the MPS market.
"The cloud creates a perfect platform for the OPEX [operating expenditure] delivery model. MPS on the cloud will be a hassle-free solution for organisations, with a pay-per-use business model that delivers real-time analytics on print," said Narayan. "It's not just about fluff in the cloud. It's about dotting the i's and crossing the t's. The keys to success for such a model lie in ensuring that clear service-level agreements (SLAs) are in place, there is a clear plan to reduce the business continuity risk and there is commitment from the vendor on delivery capabilities."
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