Man­aged Print Ser­vices


Man­aged print ser­vices (MPS) in­volve cus­tomers out­sourc­ing their print re­quire­ments. The In­dian mar­ket is es­ti­mated to be worth ` 500 crore in 2013. Key seg­ments adopt­ing MPS in­clude BFSI, IT-ITeS, man­u­fac­tur­ing and govern­ment.

HP In­dia re­cently launched a part­ner-led MPS busi­ness ini­tia­tive. Says Nitin Hi­ranan­dani, Di­rec­tor, Print­ing and Per­sonal Sys­tems (PPS) Group, HP In­dia, “Part­ners can pro­vide sup­plies, con­sum­ables and soft­ware-based ser­vices while the cus­tomer owns the hard­ware. Or part­ners can buy hard­ware through HP Fi­nan­cial Ser­vices and of­fer it to cus­tomers on base charges per month on hard­ware and click charges on ac­tu­als.”

Jayyesh Me­hta, MD, Fu­ture Busi­nesstech, Ben­galuru, has 30 en­ter­prise cus­tomers for its MPS. “We guar­an­tee 30 per­cent sav­ings on MPS as com­pared to tra­di­tional print­ing costs, and our cus­tomers have signed 3-5 year con­tracts with us. This has in­creased our recurring MPS rev­enue in FY2013-14 to ` 1.5 crore out of the ` 10 crore we clocked for our print­ing and imag­ing busi­ness.”

Rates per page for an MPS ven­dor de­pend on the printer, print vol­umes and print qual­ity. “On an aver­age, a black-and-white print costs from 42 paise to ` 1.10 plus the cost of paper. We charge a rental which is ap­prox­i­mately the cost of the printer di­vided by 36 if the cus­tomer does not want to own the printer,” says Shivram Iyer, CEO, Dixit In­fotech, Mum­bai.

Ac­cord­ing to Me­hta, part­ners can of­fer additional ser­vices such as reporting, se­cu­rity and fore­cast­ing print re­quire­ments.

Part­ners re­veal that the ven­dor-driven MPS busi­ness of­fers mar­gins of less than 15 per­cent. Additional costs in­clude the cost of standby print­ers.

Some re­sellers say that while it’s riskier, in­vest­ing in one’s own print­ers by buy­ing sec­ond-hand or re­fur­bished print­ers and re-man­u­fac­tured car­tridges makes more busi­ness sense. “While cost­ing 30-40 per­cent less per print, re-man­u­fac­tured car­tridges pro­vide sim­i­lar yields. Be­sides, heavy duty print­ers which are re­fur­bished are 10-20 per­cent cheaper than new print­ers, and give ROI on hard­ware in­vest­ments in 4-6 months,” says Hari Nair, CEO, ER3 So­lu­tions, Ben­galuru.

He es­ti­mates that the ROI on run­ning an MPS busi­ness on new print­ers is typ­i­cally 18 months. How­ever, if cus­tomers ad­here to min­i­mum print re­quire­ments the mar­gins can be as high as 30 per­cent.

“We guar­an­tee 30 per­cent sav­ings on MPS, and have signed 3-5 year con­tracts with many of our large cus­tomers. MPS con­trib­uted R 1.5 crore to our topline in FY2013-14” JAYESSH ME­HTA MD, Fu­ture Busi­nesstech

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