Use Efficient Document Service Providers to Offset High Document Management Costs - Whitepaper by Banctec1. June 29, 2011 | Updated: July 5, 2011
Use Efficient Document Service
Providers To Offset High
Document Costs
by Craig Le Clair
for Business Process Professionals
Making Leaders Successful Every Day
2. For Business Process Professionals
June 29, 2011 | Updated: July 5, 2011
Use Efficient Document Service Providers To Offset
High Document Costs
by Craig Le Clair
with Connie Moore and Emily Fowler-Cornfeld
Execut i v e S u m ma ry
Document processing services (DPS) encompass a diverse set of specialized services, such as capture,
printing, and office fleet management, for document-intensive business processes. Three distinct service
segments — hosted repository, document output, and managed print services (MPS) — continue to
address the decline of paper and help organizations tame business processes by using the full spectrum
of structured and unstructured content. Technology advances and a sluggish economy have helped
hosted repository services drive price points for capture and other document processes to the bottom,
making in-house document processes increasingly untenable as CFOs sniff out their true cost. Business
process pros should turn to DPS providers as a part of their enterprise strategy to reduce the costs of
document-intensive processes.
table of Co n te n ts N OT E S & RE S O U RCE S
2 The DPS Market: Three Segments With A Mix Forrester interviewed several vendors, including
Of Document Functions BancTec, Cedar Document Technologies,
2 Providers Fight Consolidation By Integrating ConsolidatedGraphics, DST Output, Hewlett-
Business Process Outsourcing Packard, HOV Services, Iron Mountain, Océ, Pitney
Bowes, Raine Media, RR Donnelley, Swiss Post,
2 Hosted Repository Services Show Steady
Growth Unisys, Vantive, Williams Lea, Wipro, WorkflowOne,
and Xerox. We also spoke with 30 enterprises
10 SaaS And Cloud Providers Make Small Inroads about MPS, customer communications, capture,
Into DPS
and process reform initiatives.
recommendations
11 Use Your Hosted Repository Vendor To Do Related Research Documents
More Than Just Save You Money “The State Of The Document Processing Services
WHAT IT MEANS Industry 2011”
12 Prepare For A New Wave Of Strategic March 22, 2011
Document Service Reviews “Implementing Managed Print Services (MPS)”
December 24, 2009
© 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic
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based on best available resources. Opinions reflect judgment at the time and are subject to change.
3. 2 Use Efficient Document Service Providers To Offset High Document Costs
For Business Process Professionals
THE DPS MARKET: THREE SEGMENTS WITH A MIX OF DOCUMENT FUNCTIONS
The DPS market is made up of three segments: hosted repository services, document output services,
and MPS (see Figure 1). Revenues in all three segments are strong despite dramatic declines in some
paper-intensive areas like commercial and transactional print, traditional fulfillment, and static
forms.1 Historically, enterprises have successfully outsourced parts of these document processes,
largely by keeping the functions in each segment separate. Now enterprises are crossing segment
boundaries by outsourcing more of their document-centric needs to their existing DPS vendor,
linking outbound marketing materials to inbound capture, or tying office multifunction peripherals
(MFPs) into core business processes.
providers fight CONSOLIDATION by INtegrating business process
outsourcing
This report highlights the primary DPS offerings in the hosted repository services market.2
Consolidation is affecting some service providers, as when Sourcecorp merged with HOV to form
SourceHOV. Others are fine-tuning their offerings — like when Iron Mountain sold off the majority of
its digital services business. Some of these moves, like Xerox’s acquisition of ACS, send a clear signal
about the strategic direction of the market: DPS providers must add higher-value capabilities that link
to or combine with core business processes. Vendors are using offerings based on software-as-a-service
(SaaS) to augment, but not disrupt, hosted services (see Figure 2).
HOSTED REPOSITORY SERVICES SHOW STEADY GROWTH
The hosted repository services segment provides business process pros with options for outsourcing
document processes, including capture, records management outsourcing, report archiving, and
other offerings related to enterprise content management (ECM). In our survey of the primary
providers in the DPS market, hosted repository services surfaced as a steady growth area,
particularly for outsourced paper capture and management.3 The provider market contains more
focused DPS providers like Xerox and Sourcecorp, but also includes global services companies like
Wipro and hardware manufacturers like Hewlett-Packard, Océ, and Ricoh whose hosted repository
service capabilities are becoming more advanced (see Figure 3 and see Figure 4).
June 29, 2011 | Updated: July 5, 2011 © 2011, Forrester Research, Inc. Reproduction Prohibited
4. Use Efficient Document Service Providers To Offset High Document Costs 3
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Figure 1 Document Processing Services Segments Show A Mix Of Growth And Decline
ES
SE RVIC DOC
UM
RY ENT
SITO OU
PO Life-cycle T PU
RE Email hosting Fulfillment services TS
D management
STE E
Report and statement
RV
Marketing communications
HO
archiving
IC
ES
Process management Print procurement
Forms
Capture and intelligent content services management Print and mailroom
(FM) FM and outsourcing
Physical and electronic
records management Commercial printing
eDiscovery Distributed Enterprise Transaction
capture print services printing
Other MFP and
distributed
workflows Web-to-print
Office managed and distributed
services applications
MANAGED PRINT SERVICES
58355 Source: Forrester Research, Inc.
© 2011, Forrester Research, Inc. Reproduction Prohibited June 29, 2011 | Updated: July 5, 2011
5. 4 Use Efficient Document Service Providers To Offset High Document Costs
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Figure 2 Leading Providers Of Document Processing Services
SaaS providers SaaS Providers
• SpringCM • Infosys
• Box.net • Elixir
• Hyland Software • Cedar
• Lexmark/Perceptive • Unisys
• Wipro • Wipro
ES
RVIC DOC
UM
Y SE ENT
ITOR SaaS providers SaaS providers OU
O S TP
REP BancTec Life-cycle RR Donnelley UT
ED management SE
ST Canon/Océ Merrill
Broadridge
Merrill
RV
HO
IC
Pitney Bowes DST Output
ES
Williams Lea CSG Systems
Pitney Bowes
DST/AWD ConsolidatedGraphics
Xerox Hewlett-Packard KP Corporation
Ricoh/Ikon
SourceHOV Wipro Williams Lea
Se2
Hewlett-Packard
Iron Mountain
Distributed Toshiba Enterprise Canon/Océ
Unisys capture print services
Xerox
Hewlett-Packard
Ricoh/Ikon Canon Lexmark Xerox
MANAGED PRINT SERVICES
58355 Source: Forrester Research, Inc.
June 29, 2011 | Updated: July 5, 2011 © 2011, Forrester Research, Inc. Reproduction Prohibited
6. Use Efficient Document Service Providers To Offset High Document Costs 5
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Figure 3 Criteria For Hosted Repository Services
Capture Collection of content from paper, fax, and e-forms and transformation into
digital files
Data transformation Extent of value-added services for data extraction, correction, validation, and
reformatting
Repository services Services that store and manage content for enterprises
Workflow Provision of labor as part of the document process for data entry, document
review, indexing, and data transformation
Labor arbitrage Number of dedicated personnel employed for offshore processing
Records management Provision of outsourced management (policies on retention and disposition)
for paper or electronic content
eDiscovery services Services to discover, collect, and prepare content needed to meet litigation
and legal goals
Email and message archiving The outsourced storage and management of email and message content
BPO capabilities Business process hosted solutions such as payroll, cash management, and
contact centers
58355 Source: Forrester Research, Inc.
© 2011, Forrester Research, Inc. Reproduction Prohibited June 29, 2011 | Updated: July 5, 2011
7. 6 Use Efficient Document Service Providers To Offset High Document Costs
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Figure 4 Leading Providers Of Hosted Repository Services
d
ar
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ck
es
ta
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a
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Bo
ou
/O
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c
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ys
M
on
ey
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nc
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ur
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is
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tn
ip
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Un
Iro
DS
He
Ba
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So
W
Pi
Capture
Data transformation
Repository services
Workflow
Labor arbitrage
Records management
eDiscovery services
Email and message
archiving
BPO capabilities
Significant focus Strong focus Moderate focus Limited focus No focus
58355 Source: Forrester Research, Inc.
Large And Highly Focused DPS Providers Build Scale
Scale and focus are important for capturing and hosting content and providing sustainable
pricing. Larger, more mature vendors have shown they can provide a reliable utility; third-party
certifications like SAS 70 help make clients comfortable with vendors hosting important client data
like account forms, statement and report archives, email, and other types of unstructured content.
Based on market share and the completeness of their offerings, leading vendors in this space include
Pitney Bowes, Sourcecorp, and Xerox. These vendors’ primary DPS characteristics are:
· Xerox’s hosted repository services are moving closer to BPO offerings. Xerox now has
the most complete set of document services in the industry. On September 28, 2009, Xerox
announced the purchase of BPO company ACS in a deal valued at approximately $6.4 billion.4
ACS’ $1 billion-plus capture, document review, and data entry operations business will easily
quadruple Xerox’s previously modest hosted repository services revenue.5 Before the acquisition,
Xerox had smaller, albeit growing, document services capabilities for mortgage origination,
June 29, 2011 | Updated: July 5, 2011 © 2011, Forrester Research, Inc. Reproduction Prohibited
8. Use Efficient Document Service Providers To Offset High Document Costs 7
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eDiscovery, and document capture. Xerox has moved these services under ACS’ organizational
wing to leverage its operational skills and tie document processes to core ACS BPO functions.
This will be a winning DPS strategy as the market develops, and one that will allow Xerox to
focus like a laser on the fast-growing MPS business.
· Iron Mountain will focus on digital records centers and medical images. Iron Mountain, best
known for its physical shredding and information management services, exited the commodity
cloud file storage space and sold its eDiscovery assets to Autonomy. The company will now
de-emphasize its SMB, consumer, and commodity digital businesses but continue to build out
its digital records center information life-cycle management portfolio.6 For Iron Mountain,
this includes core DPS services such as its digital record center for medical images (DRC-MI),
digital record center for images (DRC-I), and intellectual property management (IPM/escrow).
Healthcare is the firm’s second-largest vertical. IM Medical will be a growth area; it already
stores more medical records, both paper and digital, than anyone. In July 2010, Iron Mountain
announced an electronic medical records (EMR) enablement solution to scan and link paper
records with EMR and other clinical systems.7
· Sourcecorp added HOV for processing strength. Sourcecorp was founded in 1994 to
provide outsourced document management services, including electronic imaging, document
conversion, data capture, and document storage. But the company has moved toward more
complete BPO and consulting deliverables since 1999. Labor arbitrage from India, the
Philippines, and Mexico and a “rightshoring” approach have fed Sourcecorp’s growth. For
example, medical in-patient coding and claims services, with more than 1,500 customers, are
onshore-only for security purposes; in other areas, offshoring puts processes wherever labor is
cheapest. Sourcecorp offers a cloud-based repository with records management and is investing
rapidly in analytics to reduce manual indexing. The firm provides capture and indexing
services — although not eDiscovery —primarily in financial services, healthcare, government
(state revenue departments), commercial, and legal. Sourcecorp’s hot markets continue to
be insurance payers, government, and medical. HOV, a DPS company newly acquired by
Sourcecorp, has seen its analog work and receivable business decline and is experiencing more
demand for knowledge-based services, EDI, and data conversion services.8
· PBMS combines marketing databases with postal expertise. Critical communications
solutions, which tie together mail services, transaction printing, fulfillment, and eProcurement,
is the fastest-growing services segment at Pitney Bowes Managed Services (PBMS). Hosted
content services will also grow with the expansion of its outsourced eDiscovery services. In
addition, Pitney launched the Volly digital delivery service, a digital mail communications
platform for consumers to receive, view, organize, and manage bills, statements, direct
marketing, catalogs, coupons, and other content from multiple providers.9 Its strongest foothold
is still in the mailroom, where the company processes more than 20 million documents a day.
Pitney’s first digital mailroom initiative did not resonate with corporate customers, but its
© 2011, Forrester Research, Inc. Reproduction Prohibited June 29, 2011 | Updated: July 5, 2011
9. 8 Use Efficient Document Service Providers To Offset High Document Costs
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new Digital Mail service offering now integrates with email and uses a SaaS ECM back end
for document management and workflow. Pitney is well positioned to focus on higher-margin
outbound campaign services by combining its MapInfo and Group 1 Software products with its
deep mail processing expertise to provide complete direct channel output solutions.
Global Service Providers And Device Manufacturers Are Up And Coming
The top providers in DPS tend to be well-established companies with well-known brands. Scale,
dependability, and brand recognition are important, but several companies are revising their market
approaches and taking a stronger, more aggressive approach to hosted repository services. For
example:
· Global service providers are extending into the DPS segment. Wipro launched hosted
document management (HDM), which provides customers with end-to-end infrastructure
through a SaaS model. The firm uses EMC’s ECM Suite for its clients’ enterprise content
management needs and local partners or Wipro BPO centers for scanning; it emphasizes its
complete ECM and business process management (BPM) solution and its experience in a
number of domain-specific applications. HCL, while primarily a traditional offshore BPO
provider, has moved aggressively to capture outsourced document services, such as invoice
processing and customer onboarding in financial services.
· BancTec is extending its process value chain beyond capture. Irving, Texas-based BancTec
provides document, content, and payment processing services for 1,800 customers in
50 countries, across 19 operations centers split evenly between the US and Europe. The
vendor targets the banking, insurance, government, healthcare, transportation, utilities and
telecommunications, and manufacturing verticals. BancTec is transitioning from providing
hardware and technology for the banking industry — check sorting and capture systems — to
BPO services. The vendor’s DPS solutions focus on payment cycle management: accounts
payable, loan origination, credit cards, insurance, and inbound management — general
document processing and hosted archives — for mail, claims, and proxy. It also has a proven
ability to transition existing clients from on-premises technology to BPO.
· Manufacturers and office giants also provide hosted services. Ricoh/Ikon, which uses a
California-based facility but will also work on site, provides a capable invoice-processing solution
with return on investment models and migration paths to electronic invoice presentment and
payment (EIPP). Océ Business Services operates on-site imaging centers for loans, claims,
litigation, accounts payable, and student records. Océ’s integration services often feed enterprise
document repositories like FileNet, Documentum, and HP’s Tower ECM solution, and its Records,
Compliance, and Legal Solutions (RCLS) division provides integrated paper and eDiscovery
services. This year, Océ launched digital mail, which targets general corporate mail and distributes
it to employees wherever they are: in the office, at home, or on the road.
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10. Use Efficient Document Service Providers To Offset High Document Costs 9
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· HP is building DPS from its BPO business. Hewlett-Packard has a full suite of hosted repository
services, including eDiscovery and records management via its TRIM ECM software, along with
solutions for the financial, healthcare, manufacturing, government, retail, and transportation
industry segments. HP Enterprise Services (formerly EDS) has a DPS unit with four data centers:
one in Plano, Texas for e-presentment; Tulsa, Oklahoma and New Zealand, which use hosted HP
Exstream; and a Colorado Springs, Colorado data center that stands up TRIM.
· Unisys is a systems integrator with an open strategy. Unisys has a few hundred traditional
ECM and BPM customers and a growing client base for hosted repository services, principally
in financial services and the public sector. The company has various ECM service and support
contracts with half of the US state governments and many country and regional governments,
such as the European Union. Unisys provides strong integration and consulting services and
has a renewed focus on the intersection of hosting, cloud, information technology outsourcing
(ITO), and ECM. Globally, Unisys has deployed hundreds of projects with diverse ECM platforms,
like EMC’s Documentum, IBM/FileNet, OpenText ECM technologies, and — for basic content
needs — Microsoft SharePoint.10 With around 350 ECM subject matter experts, Unisys has a
strong consulting methodology in vertical areas such as interagency and court-case management,
justice and public safety, health and human services, and banking and insurance. We expect
considerable activity and a number of announcements from Unisys in 2011 around its application-
modernization-platform-as-a-service (AMPS)/ECM services and solutions offering.
Other DPS Providers Offer Strong Repository Services, But Not As Their Primary Focus
A diverse set of other DPS companies provides hosted repository services. Many of these companies
do not focus mainly on this area of DPS; others are emerging companies with smaller market shares.
Strong providers in this category include Sourcelink SSG, DST Technologies, Merrill Corporation,
Swiss Post Solutions, and Williams Lea. These vendors’ primary DPS characteristics are:
· SourceLink built its business on critical documents. SourceLink’s 500 employees spend
their time on direct marketing that results in 1 billion pieces of mail annually. It specializes
in important documents that need to be completely and thoroughly verified, such as a
disconnection notice for an important service and transactional documents whose content must
be printed on paper, like insufficient funds notices and 1099 forms.
· DST hosts content and uses AWD for workflow. DST Systems, whose Global Systems
group provides investment management solutions, is the primary record-keeper for mutual
funds transactions. It has two important DPS offerings: DST Output and the hosting services
supported by the AWD workflow platform. DST’s primary hosting center in Kansas City,
Missouri — where millions of mutual fund, insurance, and other financial transactions are
processed. Tours of the data center tours put any security concerns to rest. AWD orchestrates
people, process, and work by providing capture, dynamic work allocation, BPM, and outbound
© 2011, Forrester Research, Inc. Reproduction Prohibited June 29, 2011 | Updated: July 5, 2011
11. 10 Use Efficient Document Service Providers To Offset High Document Costs
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communications activities along with a wide range of hosted repository services. The AWD
workflow product has quietly been in this market for more than 20 years and currently supports
approximately 225,000 licensed users in 12 countries.
· Merrill targets cyclical applications. While Merrill primarily focuses on document output
services, it offers a variety of solutions in the hosted repository services segment. For example,
Merrill Data Publishing Architecture (MerrillDPA) is an Internet-based content management,
document planning, and document production tool that supports the production of both
print and web documents. It provides a production platform for cyclical, data-driven financial,
compliance, and marketing documents like contracts and enrollment kits.
· Swiss Post Solutions has moved far beyond traditional mail delivery. Many postal services
around the world are experiencing declining transaction and direct marketing mail volumes
and feel the pressure to privatize. Most are diversifying, and DPS is a natural extension of
that. But few have been as successful in this effort as Swiss Post’s Solutions division, which
now exceeds $500 million in annual revenue and provides mailroom and office services, print
services, loyalty programs, and billing and BPO services. A fully integrated platform combines
traditional outsourcing with cloud-based solutions.
· Williams Lea’s expertise is also in hosted repository services. Williams Lea provides data
capture and indexing solutions to the UK and US markets; these solutions use workflow and are
integrated with clients’ own databases. The firm has offshore teams that provide word, document,
and legal processing support to numerous clients, particularly in the banking and legal sectors.
SAAS AND CLOUD PROVIDERS MAKE SMALL INROADS INTO DPS
SaaS and cloud are game-changers for some, but not all, document technology areas. For example,
in the near term, SaaS will have a limited effect on traditional content areas like document
management, records management, business intelligence (BI), search, and BPM. Currently, SaaS
augments these services but is not a disruptive force.11 The degree of customization, integration, data
sensitivity, and IT focus are the root causes of poor SaaS adoption.12 We will see the following SaaS
trends in the DPS market:
· DPS providers will be slow to offer SaaS document services. DPS providers have been slowly
repositioning to the cloud, but many have yet to get beyond the marketing department. Few
have invested in building a true cloud solution embracing self-deployment, complete web-based
access, and integration and partnership with other SaaS offerings — particularly packaged
applications and multitenancy. Tepid customer demand and large development efforts means
this is not likely to change in the near term.
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12. Use Efficient Document Service Providers To Offset High Document Costs 11
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· The DPS industry will partner with ECM SaaS providers to target basic content needs.
Unlike traditional DPS providers, emerging ECM SaaS players focus on technology, provide no
labor support, and are less driven toward BPO and more complete solutions. Nevertheless, the
ECM SaaS players offer a quick, low-cost way to store documents in and print from the cloud
and have started to partner with DPS providers.13 SpringCM, which is growing steadily, is the
best-known SaaS brand for ECM, providing a preintegrated solution across the ECM suite.
Cedar Document Technologies, a 60-employee SaaS company, helps customers design better
communication strategies. Elixir Technologies is another customer comunications management
provider introducing SaaS for correspondence management. Box.net’s ECM Cloud Connect
links on-premises ECM systems to Box’s cloud content management platform.14 Hyland
Software’s OnBase has been quietly building SaaS capabilities for several years. And recently,
Perceptive Software, now owned by Lexmark, has seen the share of its orders that are for SaaS
rise to 25%. A host of companies offer specialized storage solutions for checks, email, and other
content, and companies such as Wipro and Unisys have chosen to OEM leading ECM products,
such as EMC Documentum, for ECM-as-a service.15
· DPS providers will package BPM and dynamic case management platforms for the cloud.
Forrester expects DPS providers to further package business solutions for the cloud with emerging
BPM, ECM, and case management platforms. These applications will require less customization
and integration, aim to be more departmental than enterprise solutions, and combine BPM
with transactional processes. For example, contract management that replaces file cabinets,
HR onboarding, or lower-value customer onboarding will become a target.16 Dynamic case
management in the cloud provides an opportunity for providers — such as Pegasystems, Appian,
and Global 360 — that have strong horizontal case platforms and can use them for service requests
or incident management.17 For example, the Unisys AMPS-ECM uses the EMC Documentum
suite as the foundation of simple or complex ECM solutions and hosting.
Reco m m e n d a t i o n s
Use your HOSTED repository vendor to do more than just save You money
When selecting DPS providers for hosted repository services, look first to existing suppliers with
good track records for service. In particular:
· Put incentives or guarantees for e-adoption in your contract. Select an output provider
that understands multichannel requirements — not just how to send an email with a PDF
attachment.18 This product category is less about paper and more about managing customer
engagement and communication. Be sure your selected enterprise solution has the
capability to transform content for emerging mobile device specifications — and make them
put skin in the game.
© 2011, Forrester Research, Inc. Reproduction Prohibited June 29, 2011 | Updated: July 5, 2011
13. 12 Use Efficient Document Service Providers To Offset High Document Costs
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· Combine document services from existing suppliers. Most providers in our review
provide services in at least two of the document service areas — for example, combining
capture with output to address the needs of the entire document life cycle. Global contracts
that combine services are often the easiest to manage and develop consistent SLAs for. Plus
they’re most likely to support corporate solutions that you can share across departments.
· Approach sourcing using SOWs instead RFPs. An RFP approach to procuring complex
document services often resolves to a set of responses that are difficult to score objectively.
Build your requirements into a statement of work (SOW) that will form part of the signable
contract with clear requirements for security, SLAs, SaaS and hybrid pricing models,
governance support, integration with key systems, and escalation procedures.
· Create cross-functional teams for document service procurements. Document services
now touch many stakeholders, including lines of business, IT, compliance, finance, and
procurement. Assemble a working group early before shortlisting providers and developing
the SOW.
· Regard hosted repository services as process management, not just capture and store.
Paper capture may still be the driver for hosted repository services, but consider the broader
skills of data management and workflow processing when selecting a supplier. Suppliers
with proven continuous improvement methods for data quality will be the best value in the
long term.
W H A T I T M E AN S
prepare for a new wave of STRATEGIC Document Service reviews
Over the next two years, look for DPS providers to acquire or develop more BPO and ITO assets
and competencies and offer them at lower and more compelling price points. The economy
has driven price points for all document services to new lows; in-house capture and printing
plants, with their challenging or unworkable business cases, will no longer be tenable. As CFOs
increasingly sniff out the true costs of in-house facilities and services, operations staff will no
longer be able to gloss over them. But even more importantly, this new wave of DPS providers
for hosted repository services will create new opportunities to tame more untamed processes
that have stubbornly resisted automation because of their document component. Use new
developments in the DPS provider market as an opportunity to tackle thorny untamed processes
that have been difficult to manage in the past.
Endnotes
1
For market growth trends in the hosted repository segment, see the March 22, 2011, “The State Of The
Document Processing Services Industry 2011” report.
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2
To be included in our research, the DPS provider needed to be of significant size in the market, have a
broad set of services, and be subject of frequent inquiries from Forrester clients.
3
Capture continues to be a popular process to move off-premises. See the March 22, 2011, “The State Of The
Document Processing Services Industry 2011” report.
4
For a review of this acquisition and importance to the DPS community, see the October 5, 2009, “Xerox
Jolts The Document Processing Services Market With A Major BPO Acquisition” report.
5
ITO, BPO, and DPS have increasing points of overlap. For a more complete description of how these
previously distinct markets overlap, see the March 22, 2011, “The State Of The Document Processing
Services Industry 2011” report.
6
Bloomberg reported that Iron Mountain’s management “concluded that the company could not continue
investing in technology development and meet its return requirements and that exploring strategic
alternatives for the digital business was in the best interest of Iron Mountain’s stockholders.” Options
include a potential sale of the company’s digital archiving and online backup services. Source: Danielle
Kucera, “Iron Mountain To Return Cash, May Sell Digital Assets,” Bloomberg, April 20, 2011 (http://www.
bloomberg.com/news/2011-04-19/iron-mountain-may-become-reit-to-avoid-elliott-proxy-contest-2-.
html).
7
Iron Mountain’s medical records capture system scans images to the McKesson Horizon Patient Folder
and to HL7 format. This is a practical business solution rather than a technological breakthrough and will
accelerate conversion, as new paper generated will be pushed into EMRs directly.
8
Sourcecorp and HOV, a medium-size Indian BPO provider, completed their merger on May 2, 2001.
HOV had previously purchased Lason, which had focused on document-centric applications, workflow
management, finance and accounting, and electronic publishing and knowledge processing services.
The combined entity delivered services from 49 locations, including the US, Canada, India, China, and
Mexico. Source: “Sourcecorp, Incorporated And HOV Services Completes Its Previously Announced
Merger,” Sourcecorp press release, May 2, 2011 (http://www.sourcecorp.com/Newsroom/Press-Releases/
SOURCECORP-and-HOV-Services-Complete-Merger).
9
The Volly secure digital delivery service, announced in January 2011, is a cloud-based digital mail
communications platform that allows consumers to receive, view, organize, and manage bills, statements,
direct marketing, catalogs, coupons, and other content from multiple providers using a single application.
This opt-in, consumer-focused consolidation service also includes online bill payment.
10
Unisys has its own ECM software (InfoImage), but increasingly strategically deploys the EMC Information
Intelligence Group (IIG) suite, i.e., Documentum, for government, financial services and other verticals like
telecommunications and transportation.
11
Software-as-a-service (SaaS) is an important new set of capabilities and engagement models in the IT
industry, particularly in the emerging world of cloud computing. We project that SaaS offerings will
grow from 7% of total software revenues in 2010 to 17% in 2013. But our analysis of 123 software market
segments shows that SaaS will have little or no effect on many of them. Moreover, some new and emerging
© 2011, Forrester Research, Inc. Reproduction Prohibited June 29, 2011 | Updated: July 5, 2011
15. 14 Use Efficient Document Service Providers To Offset High Document Costs
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software products like blog and wiki platforms began as SaaS products with no disruption of existing
vendors. SaaS will only be a disruptive force in software products that make up about 25% of the total
global software market, especially in customer relationship management, human resource management, IT
management, and security software. See the January 12, 2011, “Which Software Markets Will SaaS Disrupt?”
report.
12
To view this model or use it to determine whether to go to the cloud for your content application, see the
July 8, 2009, “How SaaS-Able Are Content, Collaboration, And Data Software Categories?” report.
13
As an example, Pitney Bowes Managed Services has partnered with Hyland’s OnBase SaaS offering.
Lexmark will link Perceptive’s SaaS offering to its managed services.
14
Box.net, in partnership with EntropySoft, introduced ECM Cloud Connect, which enables customers to
integrate local ECM platforms with Box’s cloud-based storage for access from mobile devices and improved
collaboration.
15
Certain content types, such as email, checks, and digital assets like video, tend to elude IT’s focus or have
specialized requirements that lend themselves to cloud management. For example, Viewpoint specializes
in checks and other financial records. ClearStory Systems, for example, provides SaaS digital media
communications and digital asset management (DAM). Autonomy, Global Relay Communications, and
Perimeter E-Security all offer cloud-based message (email) archiving. Also look to file storage companies
like Nirvanix to extend their offerings to include higher-value storage. And Unisys, which has been in the
systems integration, ITO, and DPS arenas for years, is introducing an application-modernization-platform-
as-a-service (AMPS) suite, which will offer ECM-SaaS along with strong consulting and center of excellence
(COE) skills and resources.
16
Low-value customer onboarding refers to transactions performed over the Web for commoditized products.
See the April 27, 2009, “Best Practices: Customer Onboarding” report.
17
Forrester has reviewed the major case management platforms and explained the target areas for case-based
applications. See the April 27, 2009, “Best Practices: Customer Onboarding” report.
18
“Cross-channel” refers to the ability to move the same content to multiple output channels without editing
the source content or templates on a per-channel basis. Channels include print, SMS, email, RSS, HTML,
and PDF. Each channel will have output features that add value to that channel, like email management for
email and white space management for print. From an operational perspective, multichannel should refer
to the base transformation of content required to consistently distribute content rapidly across interactive
and passive media outlets.
June 29, 2011 | Updated: July 5, 2011 © 2011, Forrester Research, Inc. Reproduction Prohibited
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