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Biztech Oct 16, 2012

Indian MPS Mkt To Reach $250 Mn By 2015: E&Y

By Biztech2.com Staff

A new Managed Print Services (MPS) survey from E&Y shows the the Indian MPS market is estimated at $80-90 million and is slated to grow to about $250 million by 2015.

“The market has lately seen enterprises in India using MPS to identify waste and reduce costs related to printing. This expertise is now available to businesses of all sizes ultimately reducing costs and maximising efficiency in the print environment. Having witnessed the scope, more and more enterprises tend to partner with large solution providers to simplify, better manage and reduce the cost of their print infrastructure,” said Milan Sheth, Partner, Business Advisory Services, E&Y India.

MPS segment has gained momentum in the last few years as enterprises have started to transition from CAPEX to OPEX business mode of printing. An estimated $100-120 million remains untapped due to the supply and demand side barriers out of which PSEs remains largely untapped. The report highlights how business processes and IT systems integration will become increasingly important in the near future.

Key findings of the E&Y MPS survey

Key Sectors adopting the technology

  • Primary sectors: Financial Services, Banking, Insurance & Telecom

  • Secondary sectors: Retail, manufacturing

  • Others: Healthcare, Life sciences, utilities

Demand drivers for MPS adoption in India

  • Primary drivers: Cost optimisation, Manageability and operational ease and Transition to Opex model

  • Secondary drivers - expected to become critical for the service providers to differentiate their offerings: Visibility and control, Single vendor accountability, Uptime and quality, Global mandate

Key barriers/challenges to MPS adoption

  • Demand side: Lack of cost benchmarks limits assessment, Lack of understanding on the benefits of MPS , Low acceptance in large organisations

  • Supply side: Inability of service providers to provide support in tier II & III cities, Inability of service providers to support all brands with equal effectiveness, Stringent contract terms, Increased adoption of workflows, BPM

  • PSUs: Significant resistance to change, Highly decentralised procurement, Lack of cost baselines due to decentralised operations

Other key findings from the survey

  • BFSI and Telecom, being early adopters, will continue to dominate MPS spend in years to come

  • Contribution of Manufacturing (Automobile, FMCG & other manufacturing) is expected to increase slightly by 2014 from current 20-22 percent.

  • Contribution from Healthcare and Energy & Utilities sector is currently low due to low level of privatisation of these sectors

  • Contribution from other verticals (Media & Entertainment, Travel, Transportation, Hospitality & Logistics, Construction & Real Estate and Government & Education) is currently less than 3-4 percent and is likely to remain low in coming years
by Biztech2.com Staff

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