17 October, 2016
By Sudharsan R, Senior Research Analyst, IT Hardware, Beroe, Inc.
While most Fortune 500 companies have started procuring managed print services worldwide, enterprises have little visibility of best practices and negotiation methodologies followed during the procurement process. Managed print services have evolved from a simple CPP (cost per page model) to different models like Base + Click and Base + Consumables.
This white paper highlights key pricing aspects to be verified by vendors, negotiation levers and pricing methodologies available in the market. It also discusses key aspects of the contract which include standard SLAs and penalties associated with the non-performance and desired availability levels practiced worldwide. This paper thus acts as a check list, thereby facilitating enterprises in making an informed decision while procuring MPS.
Managed Print Services Procurement
Currently organizations lack the transparency when it comes to the pricing of managed print services. While managed print services optimize the print cost of an enterprise, vendors do not pass the full benefit to the enterprise thereby creating a delta between the expected benefits versus the service provided by the supplier.
The key aspect of negotiating a best-in-class MPS contract lies in estimating accurate print volumes at the beginning of the contract. Enterprises are in a compelling need to formulate a strategy for estimating print volumes before signing any MPS contract. Most organizations estimate the print volumes by taking into account their volume history and factor the future digitization efforts before committing the volumes to the vendor.