Europe offers thousands of new MPS opportunities

Managed Print Services Connect (Feb 6 2012) Europe , Consumables

1. The European managed print services market is a huge opportunity, positioned to overtake North America as the largest MPS market in the world by 2013.

   But exactly what does that opportunity look like?

   This year, Photizo estimates there will be 5,000 new MPS contract opportunities across Europe. New engagements are prolific within Europe as MPS evolves and is increasingly adopted by smaller businesses. While the opportunity is large, many vendors aren’t even aware of all the new MPS opportunities that come into market and as MPS penetrates further into the SMB market, these potential engagements may become more difficult to assess.

   As the European market becomes saturated, renewal opportunities will surpass new contract opportunities in 2013. And by 2015, the number of new engagements will exceed 6,000 but potential renewals will rise to well over 10,000.

   The sheer number of wins required to gain a greater share of the market by 2015 is simply too great when focusing on new engagements alone. Vendors will need to convert existing contracts, as contract renewals will soon outpace the number of new engagements. This is no easy task, the majority of contracts renew with the same vendor. As the industry expands, existing MPS customers will have a greater level of options and solutions available to choose from, and the end-user is becoming increasingly more sophisticated, which will work in the favor of providers with value-add services.

   Vendors looking to penetrate the market can separate themselves from competitors by focusing on developing the client-partner relationship through advanced value-added services. Keeping the focus on the clients needs is important; whether it is solving workflow process issues, increasing productivity, cost reduction or business continuity. Likewise, understanding and developing vertical solutions that can be leveraged across Europe’s prominent vertical markets will allow vendors to pull ahead as well.
   
The market opportunity in Europe is great, even though it is mature. Vendors will need to act quickly and position themselves to take existing contracts by raising the bar with differentiated offerings.

   Learn more about the European market opportunity and the road to success, with Photizo Group’s European Market Update and Roadmap Report.

   European Market Update and Roadmap Report, Photizo Group, December 2011. These numbers are based on the revenue forecast for the EMEA region of different business segments (different segments are growing at different rates), and assume an average contract value on a per-year basis, a dynamic contract length, average spend per-employee, and growth rates determined by Photizo data.

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