Documens Boss

The outsourced services market for document management has, not surprisingly, witnessed a number of changes over the past three decades - from the early days of the microfilm “service bureau” of the 1970’s and 1980’s.  Advances in capture & image recognition technologies (both software & hardware), together with low cost, offshore data entry services and the rise of web hosting have been key developments. 
 
However, the big change in recent years has been the transition from scan-to archive only, versus capturing documents as the on-ramp for a business process.  The increasing adoption of SaaS (software-as-a-service) by the buyer is also having an apparent affect on further adoption of outsourced services for document management.
 
John Symon, SVP AsiaPac at Document Boss, collates an overview from long established service companies in different geographies, on the effect of these changes and the impact of the recent economic downtown. Sharing their insights were the folllowing industry leaders:
 
• Ken Scott, Managing Director of Arrow Imaging Ltd, UK,
• Adam Osthed, CEO of Metasource, USA,
• Mark Josman, CEO of Speedscan, Australia
• Dan Moscatiello, CEO of Swiss Post Solutions inc, USA
 
 
1) How have the document management requirements of your customers changed over the past few years? 
 
Ken Scott, Arrow
In the past, our customers’ requirements have predominantly been electronic archiving solutions.  More apparent over the last few years however, and as technology has progressed, customers are becoming more susceptible to working with electronic documents and data whilst they are classed as ‘Live’.  We have demonstrated and continue to show, efficiency gains and cost savings to increase their processes.
 
Mark Josman, Speedscan
We have seen a trend towards pre-processing of documents, rather than archive processing, as customers leverage document management solutions to extract efficiency in their organisations.
More active requirement for real time reporting and status of document processes (also, as a result of the pre-process trend). In addition, there is now the ability and need to share access to the documents with clients/partners and third party providers.
 
Adam Osthed, Metasource
Traditionally, paper-driven processes have been the focus of document management and outsourcing, but with emerging technologies changing the nature of data collection, those paper-driven processes are decreasing.  However, there is an ever increasing need for integrated solutions that combine new technologies with traditional paper-driven processes and specialized labor – all at a higher value to the customer.   Also, security and privacy issues, due to legislation and the higher prevalence of outsourcing, have increased the need for “professional”  guidance around document management and outsourcing solutions.
 
Dan Moscatiello, Swiss Post
Companies want to change the status quo and do more with less.  They are looking for more creative and innovative solutions (such as embedded technology that will streamline processes and create efficiencies) that will help fuel strategic growth. 
 
 
2) Do you see a greater appetite now for outsourcing than previously and, if so, what do you consider are the main reasons?
 
Ken Scott, Arrow
Before the economic downturn I would have said yes, and this I believe, was due, amongst other reasons, to a new generation of business leaders looking to embrace technology where historically, they would have felt safer with a piece of paper.
I do feel however, that there is a great opportunity in this downturn to demonstrate cost savings to business whilst increasing efficiency. 
 
Mark Josman, Speedscan
Yes.  Drivers appear to be costs, accountability, scalability and flexibility over staffing levels.
There is also a greater awareness of technology improvements and appreciation of potential cost benefits of outsourcing.
 
Adam Osthed, Metasource
The simple answer is ‘competitive forces’.  Over the past few years, outsourcing has become mainstream –it is generally accepted as a necessary part of doing business.  This comes as no surprise, since outsourcing is about maximizing a company’s ability to compete.  If company “A” can produce the product or service faster, better and at a lower cost as a result of outsourcing, then company “B”  must follow suit or prepare to give up market share.  Add globalization of labor, facilitating technologies and process specialization into the mix and companies have found they aren’t trading quality, reliability or security for lower costs and faster turn times but are instead gaining in all those competitive factors.  There is however, one caveat with outsourcing – It’s the same with choosing any professional service; there are good and there are bad companies, so do your homework.
 
Dan Moscattiello, Swiss Post
Absolutely.  Companies today are finding that it is more critical for them to focus on their core business, which means shifting their attention away from certain support functions.  As a result, service levels in these functions drop, operations become less efficient and costs rise.  In addition, business continues to become more and more complex.  With an ever increasing amount of information and content being generated, companies struggle to track, manage and store it accurately and effectively.  Hiring a partner to manage non-core functions is an attractive option, especially when the partner brings an innovative approach that can improve service levels, increase throughput (do more with less) and reduce costs.
 

3) What have been the biggest changes and challenges to your business in the last  2-3 years and how do you differentiate your services with your competitors?
 
Ken Scott, Arrow
Increased competition and the economic downturn.  Businesses in a recession look to cut costs and revise services.  This opens the door to competition and the benchmarking of services.  I believe this makes good business sense, however, for the service provided, it results in providing the same or a better service for less money.
 
Mark Josman, Speedscan
The biggest change has been increased appetite of companies to use workflow type processes to manage key document intensive business processes. This demand will accelerate and we are actively planning and resourcing for being able to deliver on this expected demand.
 
Adam Osthed, Metasource
The recession-induced paralysis in decision makers has been our biggest challenge.  Over the past two years, decision makers have largely been reluctant to pull the trigger on process improvements or internal innovation.  When companies should be streamlining businesses by investing in the right technologies, redesigning processes and improving supply chains, often a “keep your head down”  mentality has prevailed, where people are either too afraid or feel financially unable to invest in new initiatives.  Don’t get me wrong, there are companies out there doing the right things, but there have been a lot of “deer-in-the-headlights” companies.  Fortunately, over the last six months many of those companies / decision-makers have started to ‘come out of their shells’.
 
We differentiate ourselves by a simple, although not easy, concept - we don’t do anything for anyone that we can’t do at the “A”  level, because so much of our professional reputation and value-add hinges on delighting our customers.  We try to make our customers’ strategic objectives our own, so that we can best apply our mix of talents / resources for them.
 
Dan Moscatiello, Swiss Post
One of the biggest changes within our company has been the transformation from using manual processes to leveraging Swiss Post’s technological solutions. 
Regarding how we differentiate ourselves in the marketplace, we take a service-oriented approach to outsourcing with a focus on people, process and technology.  Many of our competitors are equipment companies whose primary focus is getting their equipment into a company, which means they are less focused on customer service once they are on-site.  We are committed to providing our clients with a service-oriented team of professionals, best-in-class management processes and innovative, right-fit technology with the goal of reducing costs. 
 

4) What is your perspective of the overall health of the service and BPO sector?
 
Ken Scott, Arrow
It is still a growing industry. I remember when e-mail was introduced, the fear for printing companies was that people would stop printing, whereas quite the opposite happened.
The need for converting paper to data is on the up, the need to work with the data to increase efficiency is also greater than ever before. If a clearly defined, cost saving and gain in efficiency can be demonstrated, then BPO’s have a very healthy future.
 
Mark Josman, Speedscan
Generally, pretty good. The Australian economy has been stronger than expected and the NZ economy, while not strong, appears to have come off the bottom.
I do however, believe, that operators without the infrastructure and robust technology platforms, as well as those that rely on post-process archive type work, will see a decline in business.
 
Adam Osthed, Metasource
The service and BPO sector is set for several years of expansion as technology enables the principles of specialization and globalization to shine.  The key will be adapting products and services with emerging technologies that will greatly influence traditional types of transactional BPO and document imaging/management.
 
Dan Moscatiello, Swiss Post
Overall, the service and BPO sector is healthy.  The continued digitization of information, moving from paper-based to electronic content, and the growing embrace of cloud computing as a business model, will help companies manage and utilize information more effectively, allowing them to provide more innovative solutions to their clients.  For a company like Swiss Post Solutions, part of a financially stable global service provider, we see plenty of opportunity to add significant value to our existing as well as new clients. However, for smaller outsourcing providers, without the size, scale and scope of Swiss Post Solutions, remaining competitive will be more of a challenge.
 
 

5) Looking forward, where do you see the biggest area for growth for your business?
 
Ken Scott, Arrow
Invoice Processing and automated data capture; this is one area within all business that is labour intensive and therefore, comes at a high price. With continued improvements to technology, this solution will become increasingly viable for businesses, both large and small.
 
Mark Josman, Speedscan
We see a number of industries and application verticals that we believe offer significant potential. These include the insurance and mortgage sectors as well as Accounts Payable automation. All of them will require increasingly complex, document intensive, business processes with robust infrastructure and process, combined with innovative technology and flexible workflows.
 
Adam Osthed, Metasource
Solutions integration – i.e. the ability to integrate old technologies and processes with new emerging technologies and processes.  The ability to take a client’s business process and apply the full spectrum of our expertise in available technologies and process engineering. Also, managing labor to build solutions that helps clients gain critical, competitive advantage.  The accounts where we have enjoyed the most financial success have been the ones where we’ve been able to apply the breadth and depth of our expertise and have graduated to being a strategic partner, rather than simply a vendor.
 
Dan Moscatiello, Swiss Post Solutions
Companies within the financial, legal and media/publishing markets continue to face economic challenges and, as a result, will be forced to make changes in the way they do business.  These sectors are currently strong for us but also offer tremendous potential for growth.  In addition, larger companies, whose local offices have traditionally functioned independently, are now starting to look for innovative and reliable national/global solutions and need a strong, financially stable partner to work with.  This is another great opportunity for us.