June 14, 2004—UK businesses have a substantial opportunity to improve document production efficiencies and cut costs, according to research commissioned by Pitney Bowes Management Services (PBMS), global provider of integrated mail and document management systems, services, and solutions. The report found that the cost of document production among large UK organizations (over 250 employees), which currently stands at 10.8 billion, could be made less costly and more productive by outsourcing to a third party.
Across larger British companies, the document production market is worth over 38% of the IT market. IT has been subject to major outsourcing efforts, with a current market penetration of 28.32%. However, at present, document production outsourcing represents less than half of this penetration level at 11.8%.
“The situation in the US is particularly encouraging to document outsourcers as it represents 22% of all larger organization production, over twice its UK equivalent,” comments Ashley Bailey, Managing Director, PBMS. “Whilst there is little doubt that it will take several years for the UK to reach comparable market maturity, the rate at which UK organizations will be grasping the advantages of outsourcing over this period is expected to be rapid—especially as management consultants increasingly recommend document outsourcing as an area for priority attention and straightforward gain.”
The report also highlights the fact that integrating documents with the call center is becoming increasingly important to call center efficiency. If call center agents can retrieve and view documents in exactly the same format that they were sent to the customer, they will be able to resolve customer queries more satisfactorily.
Bailey continues, “Many argue that document outsourcing carries less project risk compared with the IT equivalent. If this argument is accepted, then organizations under pressure to deliver cost savings, improved service delivery, and competitive edge would be well advised to look carefully at document outsourcing in 2004 and beyond.”
The research was carried out between December 2003 and January 2004. Primary research was conducted by telephone among UK top 1000 companies and UK central and local government organizations, with selected case study and secondary research.
