1. Output Outsourcing in the General Office Peter J. Grant

2. By year-end 2004, 60 percent of enterprises will outsource some part of their document output needs (0.8 probability). Strategic Planning Assumption

3. Output Management Blind Spots Few know exactly what equipment they have Few monitor supplies or post-acquisition spending Organizational responsibility is fragmented Not perceived as a serious problem or concern Most pay only intermittent attention to output fleets

4. Key Trends Convergence — MFPs — color Focus on immediate cost savings Organizations are asking for outsourcing Move paper workflows to digital New vendors are expanding services

5. What Is Office Output Outsourcing? Offloading the management and servicing of print, copy and fax/scan in the office Utilize external expertise for the management of mature and emerging technologies and services Partnering with a trusted vendor that will begin driving device management efficiencies that lead to automation or improvement of the document management process

6. Self- Serve Full Service Outsource In-House Buy Printers, Cartridges and Others Depot Repair Help Desk Tech Support CRD Mailroom Facilities Management Break/Fix Output Outsourcing Continuum

7. Digital Copier Network Printer Multifunction Systems Copy Print Fax Scan Are MFPs the Answer?

8. Rising Speeds, Falling Costs

9. Supplies Costs To whom it may concern: The purpose of this letter is to thank you for your business over the past year. VP Marketing Traditional Product Purchase Service Purchase Maintenance Costs Cost per Page Capital Costs To Save, Buy Pages, Not Devices

10. Digitization of the Workflow DigitalPaper

11. Document Cost-Saving Model Time and Effort Technical Solution Business Solution 30% Automation and Centralization Solution Management Optimization 25% Product Optimization Consolidation and Standardization 45% Process Optimization Alignment With Business Revenue Growth

13. Which External Factors Most Influenced Outsourcing Vendor Selection: 55% — Word of mouth 54% — Outsourcer’s reputation 48% — Outsourcer’s technology partnerships 50% — Recommendation from industry influencers

14. Drivers of Outsourcing Growth The degree of decision-maker confidence The pace at which services vendors generate demand by creating compelling innovation using already-available IT

15. What Are Other Enterprises Doing? Clients that outsource their desktops, networks and servers now are asking if they can include printers, copiers and MFPs Some are confused about outsourcing or don’t know how to sell the idea internally

16. Nine Steps to Successful Outsourcing 1.Understand the enterprise’s business goals and directions — Proactively seek input 2.Inventory the current environment — Equipment, supplies, services and resources 3.Develop or update the sourcing plan — That includes requirements and resources by type and function 4.Develop baseline costs — Allows objective analysis

17. Nine Steps to Successful Outsourcing 5.Develop objectives — Provide guidance in selecting good candidates for outsourcing 6.Determine corporate approach and management skills — Consistency with policy and presence of skills to manage outsourced function 7.Determine asset transfer requirements — What the enterprise is willing to transfer and its value 8.Determine performance requirements — The desired price and desired performance levels, not the technology, with enforceable SLAs

18. Nine Steps to Successful Outsourcing 9.Carefully construct the outsourcing contract — While there is still some leverage, recognizing that mergers and so forth can complicate the arrangement

19. Recommendations Evaluate and assess your office’s output needs to see if it is a candidate for outsourcing Understand and know your output volumes and costs before beginning the process of selecting an outsource vendor Use Gartner Dataquest’s nine-step guide to office output outsourcing

20. Output Outsourcing in the General Office Peter J. Grant