Many companies still have in-plant operations to manage their print and mail needs. However, the days where this makes fiscal sense are long gone. That’s why many are turning to outsourcing. But what can clients expect that are looking to outsource? Scott Concannon, Area VP/Solutions Partner at PC Group, offered details on this transition in this episode of Ask the Experts.
“The initial question is if this is a core competency or a function of what they do. Mostly it’s not a core competency. It’s just been bolted on at some point,” Scott said.
The shift to outsourcing happened for several reasons, as explained by Scott. “Electronic communications are more prevalent, so print and mail communication is declining. That’s a trend that’s easy to see just by looking at first-class delivery volume.”
Next, to stay on the cutting edge, companies have to invest heavily in an in-plant. “It’s expensive with fixed overhead in the form of FTEs, leases, equipment, and repairs. So, you have increased fixed costs with decreasing volume,” Scott noted.
The technology to ensure accuracy and compliance is a major investment, with inserters costing at least $1.5 million and printers at $2 million. Then there’s the expense of security. “Security for data is expensive, and a compliance manager is too if they have one,” Scott shared.
Since print and mail isn’t a critical business function and the cost and risk exposure are so high, it only makes sense for companies to outsource to a partner that only focuses on transactional mail. “If the PDF comes to us print ready and is right, we’re processing client records correctly every time,” Scott added.
