PG Kamath of Lexmark states that outsourced printing is expensive and involves the security risk of confidential data being read by unauthorized personnel. But Thomas Suresh Anand of WeP Peripherals maintains that this service lowers the TCO of a company and data security is taken care of.

Outsourcing very expensive...

The concept of outsourcing printing is new in India and is not cheaper than its alternative - cost of ownership. The price of printer ownership is rapidly going down and it would be advantageous for a customer to buy the product. This is especially because there are several good options available for the price-sensitive SME segment. Outsourcing looks promising in certain segments, where high-volume printing requirements exist.

Location of outsourced printers...
The location of outsourced printers is another factor that can affect the future of this concept. A customer would like to have a printing service center close to his establishment. Unless this is possible, outsourcing printing is not a viable option for him. For this, the company offering outsourced printing services needs to have a well-spread network of centers, which calls for heavy investment.

Convenient, but not cost-effective...
Outsourcing is more of a convenient tool rather than a cost-saving one. Given the fact that the printer and consumables cost remains the same, companies buying the hardware actually stand to gain in the long run. This is because they can avail of depreciation benefits accrued as a result of owning the asset.

Security risks...
Data security is definitely a major issue that is posed by this concept. Corporates are still not highly convinced with the security aspect of printing outsourcing concept. No organization would like to make its data accessible to outsiders, and therefore they would have to print sensitive information in-house and relegate the routine printing tasks to outsourcing agencies.

Print quality compromised...
In outsourced printing, it is often noticed that the print quality is compromised in many cases by the use of refilled or counterfeit toner cartridges to justify the cost benefit to the customer. Incidentally, acquisition costs on laser printers start from as low as Rs 8,990 in mono printing and sub Rs 30,000 in color printing. So, most companies can easily look at purchasing printers. Organizations who have bulk printing applications may seek outsourcing.

Zero capital cost...

The most lucrative aspect of outsourcing printing is that absence of no capital cost, since the printers are never purchased. There also exists zero product obsolescence as the IT asset ownership is with the outsourcing partner. Free consumables are supplied by the outsourcing partner, which the customer would have to buy otherwise. This is also the highest cost component in owning a printer. Additionally, the outsourcing partner provides free maintenance of the machines.

“Outsourcing is ideal for bulk printing, as it reduces the capital cost without compromising on quality” Thomas Suresh Anand, Business Head & CTO, WeP Printing Services Business

Well-spread network...
WeP Peripherals (WeP) is in the process of designing and deploying a virtual printing services network of over 10,000 print points across the country. This printing services network is expected to be ready for use within three years and would enable subscribers of this network to print from over 100 cities in the country. The heart of this printing services network is a website www.wepprint.com, which customers can access to print from anywhere.

Saves 15% to 30% on TCO...
The concept of outsourcing printing is gaining ground among corporates. Depending upon the printing applications used, companies can avail of cost savings of 15% to 30% on the total cost of ownership vis-à-vis printer purchase. Another reason for its increasing acceptance is that it relieves the CIO of managing printing assets.

Data security ensured...
Data security plays a crucial role in the outsourcing printing space. Especially in offsite printing services where the customer gives the data to the service provider for fulfillment of the print job. Technologies like remote printing and secure printing address these data security aspects to a great extent, since the customer is in complete control of the printing from initiation to the completion of the print job.

Ideal for bulk printing...
Any enterprise having a print load of 30 pages and more can opt for the outsourced printing. Currently over 800 customers in various enterprises segments are using this service. This includes large corporates, SME, public sector unit and government institutions. Also, outsourced services, which today primarily covers mono-laser printing is expected to cover the entire gambit of printing, including high-speed impact printing, color laser printing, high-volume printing and continuous laser printing segments.

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