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European Professional and Managed Print Services: An Untapped Annuity Stream for the Office Equipment Market

Publication Date: July 2009
Service: Network Document Solutions Europe

Introduction

InfoTrends defines a “Solution” as a set of software and services, often accompanied by hardware, that improves a process, solves a business problem, or creates a new business opportunity for a customer. As we move from a hardware centric sale to more of a solutions centric sale, vendors must include a solid software strategy along with a strong service component, or a professional services strategy that will deliver these promises to their customers. In the past few years, InfoTrends has seen hardware manufacturers successfully plan and execute their software strategies to compliment and differentiate their hardware offerings. As others begin to execute similar software strategies, however, it will also become more difficult to differentiate their software offerings. InfoTrends views professional services as the real differentiator to the solutions sale because these services revolve around customer intimacy and understanding and providing solutions to customers’ problems. These services are harder for a competitor to match and can essentially lock out the competition because they are tailored and customized to specific customer pain points.

Professional services can exist in many phases of a solutions led sale, and many types can be offered. They can be offered as consulting services, project management, installation/integration, and support and maintenance professional services. Within these professional services engagements, customers can obtain these services “as needed,” on a contractual, project basis, or as a contractual managed service. These managed professional services present an interesting offering in the office equipment industry because they are similar to traditional copier dealer services that include toner replenishment & break fix services within a contract period. New managed services methodologies include “managed print services” that may involve a variety of mixed fleets to manage all the output/print related activities. Another methodology is “managed services” that may also include managed print services as well as workflow improvements that can increase productivity while improving output/print costs. InfoTrends has witnessed the success of professional services, managed print services, and managed improvement services in the enterprise accounts. Companies such as Xerox Global Services, Oce Business Services, and now HP’s Enterprise services organizations have penetrated these accounts by offering these services, securing large installations and contracts (many worth millions of dollars) over a long customer engagement. InfoTrends believes that there is a similar and bigger opportunity when it comes to medium and large-sized business, as they too have large office infrastructures to manage and lower penetration of business process improvements and implementations. There are also many more of these opportunities available.

The problem lies in determining who will service these mid-market customers. The high-end “global services” organizations cannot service these accounts on their own because there are just too many of them to focus on; therefore, most rely on channels to supply the demand. Traditionally, these have been services by direct OEM organizations, traditional copier dealers and IT resellers, VAR’s, and systems integrators. Each of these channels has some core strengths, but they often fall short of being able to offer a true portfolio of professional services. Herein lies the dilemma.

InfoTrends’ new multi-client study, “European Professional and Managed Services – An Untapped Annuity Stream for the Office Equipment Market,” will take an in-depth look at the professional services market. The study will provide an understanding of various channel capabilities in regard to professional services as well as customer behavior in relation to purchasing and engaging professional services.

Project Objectives

Professional Services – End-Customer Objectives

• Understand how customers currently engage with IT, office equipment vendors, dealers, consulting companies, fleet management, SI/VAR, and channels in relation to professional services
• Examine how customers pay for these types of services as well as how much they are paying depending on the engagement
• Determine if there is a bias to certain OE companies that deliver professional services
• Understand the market for professional services for various customer size segments and vertical markets

Professional Services – Channel Objectives

• Understand the professional service capabilities of various channel types
• Determine what types of professional services various channels are currently offering customers
• Discover what channels are investing in to deliver future professional services
• Evaluate what channels can best address various professional service offerings for the mid-market opportunity.

Managed Services – End-User and Channel Objectives

• Evaluate the adoption of managed services in the mid market
• Define who is offering managed services to companies in relation to the equipment market – IT vs. OE channel
• Examine who has been successful offering all of the components of managed services (i.e. HW, solutions, consumables, break fix, and professional services) to the mid market
• Determine whether customers have a preference for the OE channel vs. the IT channel as a source of these managed services
• Understand how customers want to pay for these managed services – contract, click based
• Find out if customers understand the concept of packaged services
• Examine whether customers require a purchasing mix of OEM vs. third-party consumables
• Determine whether customers like the concept of packaged services
• Evaluate the market for managed services according to various customer size segments and vertical markets

Analysis & Project Deliverables

We will conduct extensive analysis of the desk research, personal interviews, and surveys to develop a comprehensive understanding of the opportunities and issues presented by professional services. Clients will receive a combination of reports, presentation materials, and data for senior management, product managers and planners, and sales and marketing executives. These materials will include:

• Executive summary with key findings
• PowerPoint style document with bullets
• PowerPoint presentation with charts
• Professional & managed services market forecast for OE Channel
• Data tabulations

Getting Started

For more information on the study or to sign up as a participant, contact Jason Russell at + or via e-mail at . Early subscriber discounts are available until February 20, 2009.