Global Records Management Industry Outlook

  • The global market for records management including physical and electronic was valued at $159 billion in 2016 and is expected to grow at a CAGR of 5.2 percent, to reach about $168 billion by 2020
  • Emerging regions including Africa, APAC and Latin America are expected to witness higher growth rates due to the increasing acceptance of document process outsourcing services
  • Tier 1 players have an average industry retention rate of about 98 percent

records management market

Records/document management industry has seen a growth in recent years due to laws and regulations passed by the governing bodies.

  • The industry has a high retention rate (Iron mountain has an industry retention rate of about 98 percent)
  • The practice of maintaining electronic records is becoming more popular among organizations
  • Regional Dynamics: Emerging regions including Africa, APAC and Latin America are expected to witness higher growth rates due to the increasing acceptance of DPO services

Regulatory Trends

The most important International standard for record and document keeping is ISO 15489.

  • ISO 15489 was laid down to enable effective records management for organizations of all sizes and types. They help in better risk management and opportunities for cost savings
  • Each country has its own standards for records and document keeping, and hence differences arise between the ISO 15489 standards and the standards laid down by each country

Drivers and Constraints

Drivers

  • Companies need to comply with various regulations imposed on them during audits and legal matters. Hence, there is a need for excellent and efficient records management and maintenance
  • Reduction in the cost of storage worldwide has also favored the records management market
  • Huge advancements in the technology space have enabled services like online records storage, storing digital copies of documents, and document imaging
  • Ease of use and faster retrieval times have played a major role in end users to shift gradually to record management and electronic records management services

Constraints

  • Economic conditions like higher levels of unemployment, inflation, tax rates and other economic factors affect the demand for record, management services
  • Increased market competition restrains expansion of all: Service providers compete for acquisition to undertake expansion activities, which increases the price for acquisitions and reduce opportunities for some. The market is seeing big players becoming bigger like Iron Mountain and few regional players scaling up
  • Lack of a universally accepted standard is also one of the major challenges for this market
  • There can be an unexpected increase in spend due to factors including fuel hikes and hidden costs
  • Organizational reluctance in support due to issues related to information confidentiality

Pricing Models

What will be the best suited pricing model for the industry?

  • Considering the number of transactions that take place on a daily basis, the volume of papers/boxes for storage will never be predictable. It is suggested to go for an open book pricing model which will help the industry to only pay for what they use and will result in transparent billing as well. For records management, the cost components involve a lot of hidden charges such as extra payment which includes palletizing, shrink-wrapping and transportation costs and other service charges
  • Opting for an open book pricing model will help to reduce the makeup pricing of different box type. An open book model would let the industry understand better the fixed and variable costs which incudes, the cost per cubic feet incurred during the engagement period with the service provider
  • By adopting open book pricing with the supplier, the industry can better understand the true costs of the operation incurred by the supplier and can lead to a better supplier relationship over a long period
  • Most of the suppliers offer fixed cost model as they have a rate card for each of the services. Opting for an open book model will completely depend on the mutual understanding of the industry and the supplier