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Minolco embraces outsourcing trend

Johannesburg, 02 Oct 2001

With more and more companies choosing to outsource support services such as IT, logistics, security and cleaning, Minolco is the first company of its kind in SA to offer output management solutions to large corporate organisations via its newly created outsourcing division, Oc'e Outsourcing.

Minolco is the principle importer and distributor of Minolta digital office automation products and the range of Oc'e high volume copiers, printers and engineering systems. The introduction of the Oc'e Outsourcing division means Minolco now offers an `output management` service in addition to the marketing and selling of copiers and printers.

Oc'e Outsourcing specialises in providing clients with Minolta and Oc'e products on a contractual basis and integrates this equipment with existing systems in the client`s environment.

Oc'e`s business unit manager, Pierre la Grange, says increasing numbers of companies overseas are outsourcing support services such as printing and copying. "Instead of buying equipment as fixed assets, organisations are now entering into contracts with equipment suppliers such as Minolco and gaining from the suppliers` expertise and know-how with regard to operating and maintaining the equipment," he says.

La Grange argues that medium to large organisations do not really understand the cost of producing a paper document. "They only see the tip of the iceberg - the capital, service charges and, maybe, the cost of the paper, but if you look at industry research figures, between 10% and 15% of organisation spend goes to putting images onto paper - ie creating, distributing, reproducing and archiving information.

"Outsourcing helps create savings by managing all these processes. The organisation can then see the cost of ownership and this allows them to do future projections and budget accordingly," he says.

La Grange adds that outsourcing also addresses the `technology assimilation gap`. "Technology is constantly changing and so are the needs of the various organisations. What outsourcing does is to provide equipment that is still cutting-edge, but that also follows the direction in which the organisation is going," he says.

Ninety percent of outsourcing is on-site but, according to Le Grange, work can also be completed off-site too. "Most clients want the relevant equipment on-site so that their print-on-demand needs can be met," he says.

Oc'e Outsourcing recently clinched a major outsourcing contract with Nissan, worth an estimated R30 million.

"When a client is interested in our services, we conduct an investigation to see what the company`s user requirements are, compile specifications for the types of equipment they would require, and then sit down with them to discuss how to integrate the new systems into the company - that`s what happened with Nissan," says La Grange.

Oc'e`s major challenge with Nissan was to pay special attention to how the staff would be affected. Nissan wanted its staff to grasp the benefits of the new system and understand how it would create savings and increase productivity.

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Editorial contacts

Angela Alexander
DiagonalStreet Communcations
(011) 880 2271
Pierre la Grange
Minolta South Africa
(011) 249 4000