MPS leadership gap shrinking and competition will intensify as businesses demand more from MPS providers
12 December 2019: The Managed Print Services market is set for growth in 2020, but businesses are becoming more demanding as they aim to power digital transformation, reduce cost and security risk and improve sustainability performance.
Quocirca’s global Managed Print Services Landscape report, released today, identifies the drivers that are shaping MPS engagements and analyses how vendors are positioned to respond. The report draws on primary research conducted with IT Managers in the UK, France, Germany and the US and finds evidence that organisations are still struggling to realise cost reduction and environmental MPS objectives.
Key findings include:
- 79% anticipate increasing MPS spend in the next 12 months, with 27% planning a significant increase
- 50% say printing is still very important to their business
- 72% have not fully achieved consumables cost reduction objectives
- 71% have not fully realised environmental impact reduction objectives
- 63% say they are in the optimisation phase of MPS deployment, focused on delivering workflow tools to improve business processes
- 37% say MPS is very important to digital transformation – up from 23% in 2018
- 84% say embedded MFP apps are useful for integrating paper-digital workflows
- Security, sustainability and innovation are the top supplier selection criteria
Commenting on the research Quocirca’s Research Director, Louella Fernandes said: “Businesses are planning to increase MPS spend, which is welcome news for providers. However, the market is mature, so they need to differentiate their offering and seek broader engagements that tap into customer demand for digital transformation, security and sustainability. Buyers are looking for additional services such as workplace services, IT managed services and collaboration services, so providers that respond to this demand will be better positioned to help organisations achieve the MPS objectives that have so far eluded them.”
MPS leadership gap shrinks as vendors bring broader experience to the table
Quocirca’s analysis finds competition is intensifying as vendors bring their different strengths and broader IT services experience to market. Xerox continues to lead the group, but its lead is being squeezed, particularly by HP which has made strong advances in deepening its security services and solutions portfolio. Ricoh stands out for its comprehensive range of non-print related IT and communications services. Lexmark continues to excel, particularly in distributed environments, boosted by its new cloud services offerings.
Louella Fernandes says: “Leading vendors are pursuing a strategy of diversifying their offerings and strengthening competence in areas such as cloud, IoT, security and analytics. To succeed they must continue to build deeper relationships with clients across a broad range of areas and become a strategic partner to IT decision makers and lines-of-business.”
Security, sustainability and innovation are top supplier selection criteria
Pressure to meet security and compliance requirements and the growing weight of sustainability concerns are reflected in the face that security and sustainability top the list of most important supplier selection criteria. 48% of businesses are looking for an MPS provider with security expertise while sustainability expertise, a newly added option in the 2019 survey, is just 1% behind.
Achieving regulatory compliance has risen in prominence as a benefit of MPS and was rated very important by 52% of businesses. Improved service quality/reliability and reduced costs were in second and third positions.
Summing up the MPS landscape, Louella Fernandes says: “The basic MPS market is mature but there are still opportunities for providers to seize opportunities to increase customer relevance and deliver value, especially by developing new offerings in less well-served areas such as IoT analytics and cloud-based print management.
“Security and sustainability may be high on the agenda, but the fundamental driver of MPS is cost reduction and this has still not been fully realised by the majority of organisations due to their enduring reliance on print. MPS providers that drive efficiency around business processes and minimise wasteful printing – leading to reduced risk, cost and environmental impact – will be best positioned to face the future.”
The Quocirca Managed Print Services Landscape report contains detailed market and vendor analysis providing a comprehensive insight into the drivers, priorities and direction of the industry into 2020. It contains recommendations for providers and buyers of MPS to assist in strategic decision-making. Download the complimentary executive summary or purchase the full report.
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Quocirca is a global market insight and research firm providing strategic market analysis and intelligence to print industry business and technology leaders. Quocirca specialises in analysing the convergence of print and digital technologies in the future workplace.
Since 2006, Quocirca has played an influential role in advising clients on major shifts in the market. Our consulting and research is at the forefront of the rapidly evolving print services and solutions market, trusted by clients who are seeking new strategies to address disruptive technologies.
Trusted by global industry organisations, Quocirca offers a wealth of specialist knowledge across the connected print ecosystem. Our extensive research activities are backed up with rigorous analysis and a robust primary research programme.