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