Firms urged to look at print costs

Businesses should re-examine their printer costs, following warnings by analysts, consultants and vendors that devices are often underused and few firms properly understand how much they spend on print.

Gartner puts the cost of printing for enterprises as high as three per cent of annual revenue, and estimates potential savings of up to 30 per cent.

"For a typical enterprise customer, increased return on technology investment is achieved through increasing productivity, simplifying management, and optimising print environment asset utilisation," said Gartner analyst Peter Grant.

"Combined, these elements can contribute up to a 30 per cent reduction in imaging and printing costs for most enterprises."

But many companies have no firm idea how much they spend, and do not see print costs as a priority.

A recent survey of US and European businesses by RS Consulting found that only 13 per cent had prioritised reducing print costs.

Separately, research conducted by printer firm Lexmark concluded that companies have no idea how much they spend on their printing processes, and fail to make the best use of the devices they buy. Over half of printers are under-used, the firm said.

"There is also a significant overlap between devices - as much as 30 per cent in some cases - and many companies have too much equipment," said Paul Curlander, chief executive at Lexmark.

Curlander added that companies should realise that only around five per cent of a company's budget for printing and copying devices is spent on hardware.

The rest goes on operating costs, which amount to around 45 per cent of the budget, with 50 per cent spent on maintenance and support.

Hewlett Packard believes that its total print management programme can reduce support and operational costs.

But businesses keen to address print and imaging costs face a logistical nightmare, often needing to bring together their IT department (printers), facilities department (copiers and device removal) and individual business managers (print orders) to successfully change print strategy.

"The human story needs as much management as the technology story," Peter Urey, IPG category manager at HP, told vnunet.com.

Andrew Roberts, senior manager at Cap Gemini Ernst & Young, suggested that the business case was "compelling", and that the firm had identified annual print cost savings of £1.5m, reducing its devices from 700 to 500 in the process.

But he conceded that, despite high levels of consultation, more was needed.

"Although there was a lot of dialogue, if I were to start again I'd spend more time studying to better understand the business case for each device," he said.