After having entrenched itself on the global turf, Xerox India is focusing towards providing end-to-end document management services for the year 2012. CellIT speaks with Vipin Tuteja, Executive Director, Xerox India about its current initiatives and future plans for the Indian region.
Q) What is the current focus for Xerox in India?
Xerox, over the years, has established itself as the world’s leading enterprise for business process and document management. Our focus on services has produced good results for us. Xerox is now a $22.5 billion company, with nearly 50 percent of Xerox global revenue coming from its services businesses. We strengthened our portfolio across entry level single function and high end multi-function devices across A4 and A3 segments for both color and mono. We also strengthened our leadership in Graphic arts and digital imaging solutions that targets the photo printing, packaging and book publishing industry.
In 2012, complying with our corporate vision, Xerox India would focus on providing end-to-end document management services to our customers throughout India. At the same time, Xerox aims to strengthen its technology and channels business. With increasing awareness services; the widest portfolio in office documentation and digital production systems in the industry along with strengthened channel operations, Xerox India is poised for a strong growth in 2012.
Q) How does the company look at the burgeoning enterprise space? What products and solutions are being positioned for the enterprise sector?
As part of the “Go to Market” strategy for 2012 we have a two pronged approach. While we at Xerox India will continue to strengthen our technology and channels portfolio, we will also accelerate our services business with focus on the fast growing verticals of Banking, Insurance and Telecom.
Services for Enterprises and SME’s are the major driver of Xerox’s India strategy. We have in-house end-to-end capabilities to transform and optimize business process and document management value-chain. This is a key differentiator that Xerox brings to large enterprises in India. While several players offer compartmentalized solutions in these domains, but capability to streamline the entire value chain is something that is unique to Xerox. Sectors like Banking, Financial Services, Insurance, Telecom, Retail, Consumer Goods and IT/ITES look very promising for our services growth. As the only player in the market that has the capability to streamline the entire value chain for its customers, we are well positioned to participate and gain the leading share of this growth.
India presents huge growth opportunities for Managed Print Services (MPS) & Document Management Services as large businesses continue to use paper and traditional means of storage and there is an increased need for automation within enterprises. The DMS market has evolved over the years, and today it has become a core business process in every enterprise. Enterprises, which have not yet leveraged DMS, are looking at it as a potential business enabler. There are several factors that have led to the growth and the need of document management. One of the prominent factors being observed in document management space is that most of the medium and large organizations are consistently on the lookout for ways to cut costs and increase profits. However, very few of these enterprises access and manage documents (the lifeblood of business processes and a key source of costs).
Xerox is a pioneer in Document Management Services, offering an integrated range of products and solutions as well as consulting services to optimize office document management services, improve productivity, reduce the output costs and create value by making smarter connections between people processes and technology. We offer a suite of services for managing document output and infrastructure assets to help organizations deliver measurable efficiencies, reduce costs and improve productivity. Xerox Office Services offerings in India include Office Document Assessment, Device Management, Asset Management, Asset Optimization, Supply Management, Break-Fix Management and Help Desk.
Xerox India has always been at the forefront of product and technology innovation. Xerox today has the most comprehensive product portfolio ranging from desktop printers and multifunctional devices SME’s to Enterprise on a national and global footprint. We were among the first in the industry to launch Hi-Q LED enabled printers and showcase revolutionary Solid Ink technology. We are further strengthening our Phaser & Workcenter range of products and will launch a new range of office automation devices in 2012 for the Enterprise and SME audiences
Q) How many channel partners work with Xerox in India? What are your plans to expand the channel network here?
During 2011, Xerox India expanded channel base with focus on top 200 cities. Xerox India conducted nationwide upcountry roadshows and showcased a new range of the flagship – Xerox Phaser and Workcenter devices that got overwhelming response from partners and customers across the country. We also introduced the ‘Authorized Service Partner Certification Program’ in the A3 space focused at developing the channel and equipping them with the skills and capabilities to deliver outstanding customer service experience and complements it with a revenue sharing model for the partners. Furthermore, Xerox India also realigned its distribution strategy. Distributors earlier had a limited role of managing logistics and providing credit support to partners across the country with the partners being the face of the company to its customers. Post the restructuring Xerox has equipped distributors to engage Xerox existing set of partners as well as use their own I.T partner network across the country to expand the partner base. Xerox India is also bullish on the A4 segment and the new distribution system would enhance the volume and supplies business of Xerox India to newer heights moving ahead. In 2012, we will continue to strengthen our presence in the top 200 cities and increase our engagement with our partners and customers to maximize their benefits in terms of better returns.
Q) What are some of the biggest challenges that you are acing in this market today? What is your strategy to overcome these challenges?
Managed Print Services & Document Management Services will continue to gain more visibility among organizations, however, the industry does face certain challenges in the Indian market. Education and awareness of customers on the space is a major challenge. Organizations overlook the additional costs incurred due to excessive printing & unorganized documentation including the expenditure on supplies, services & maintenance affecting the employee productivity.
The other major challenge faced is to seize massive opportunities based on value based paradigm. The options are commoditized and it is hard to be competitive with hundreds of little companies which have very little to offer as value proposition other than the price.
Also an interesting trend in India, we have observed that SMB’s are not really interested in using device management infrastructure or workflow management but mainly gravitate toward printing done on a pay-per-page basis.
The other big challenge faced by the market as a whole is with the low grade refilled consumables that are available in the market, which is something the whole industry has been tackling over the years. The high end market be it in enterprise or SMB’s are focused on purchase of their consumables from organized retailers or from the vendor they have sourced their printing requirement and as part of their annual service contract. In majority of cases they abstain from refilling at unauthorized outlets as the print quality and life of a printer tak
es a beating. Also enterprises and SMB’s adhere to certain guidelines for their IT requirements even if local refills comes at much lesser perceived cost than original consumables. Customers aware of the benefits of using Original cartridges and toners adhere to the usage of original supplies whereas a majority of consumers at home and SOHO approach the unorganized refillers. Here there is a challenge as the segment is huge and widespread across the country. Most companies today are looking at various marketing tools- advertising and promotions to create the awareness and the pull towards original supplies however a lot has to be achieved in the segment.
Q) What kind of buying trends do you see coming into the year 2012?
- For printing at home; while there is an increased demand for photo printers however consumers are also looking at printing from retail outlets- PSP’s across the country which is certainly a boost to digital printing. Consumers are also using the World Wide Web uploading pictures and ordering prints online
- At the office environment in SMB’s and upwards , there has been an ever-growing market for multifunctional devices over single function devices triggered by its adoption small/ medium size businesses as well as large enterprises. Also as industry analysts foresee; both large and small organizations are turning to laser MFD’s as compared to ink devices. While the debate continues, many analysts believe that the two technologies will co-exist with each other. Yet another school of thought holds the view that laser printers will dominate and eat into the market share of inkjet printer market in the coming few years. However, the past two years, the inkjet technology has seen tough competition, with greater adoption of laser based devices in the SME’s and the Enterprise segments due to higher level of efficiency, lower total cost of ownership (TCO), high quality prints, ease of use and value.
- Another key trend going forward as the market matures, mono lasers will take a low and ‘Color laser MFD’s’ are going to become extremely popular providing customers color solutions at effective price points. As a result, Xerox has also transitioned a movement from mono laser MFD’s to color multifunction devices. However Xerox is also upbeat to meet the demands of mono laser MFD’s in certain business segments.
- And one of most important factors in MFD adoption is that majority of Xerox MFD’s are network enabled devices. These devices can easily integrate with the existing networks available at customer locations. Coupled with Xerox MFD’s; the Xerox DocuShare enables document management, collaboration, review and approval, and web publishing to support information sharing at all points of the enterprise by every knowledge worker. Xerox DocuShare provides a complete end-to-end document management solution from a single trusted vendor with compatibility to Microsoft Windows and Outlook applications.
- Lastly Indian enterprises have increased their adoption of Document Management Outsourcing services; while this is dependent on the printing volume and requirement, the trend is picking up well.