Research suggests 66% of channel organisations predict a revenue bounce back in 2021
The Managed Print Services (MPS) channel is optimistic that 2021 will see revenues rebound and growth in opportunities to offer cloud services, contactless printing and support for home printing as customers adapt to the demands of remote and hybrid working.
Quocirca’s 2020 State of the Channel survey investigated attitudes among 205 channel organisations selling managed print services (MPS) in the UK, France, Germany and the US. Although 50% of respondents reported that revenue has declined in 2020, the majority display optimism for the next year, with 66% predicting that revenue will rise in 2021.
COVID-19 had a severe impact on the sector, with 45% of respondents saying customer print volumes have fallen. This rose to 62% among UK respondents and 64% in the USA, while only 24% of French organisations said print volumes had dropped. Overall, 53% said the pandemic had a negative impact on their business, although for 25% the effect was positive.
Quocirca Director Louella Fernandes comments: “The pandemic has accelerated changes that were already under way in the print market. The channel is optimistic but must adapt fast to capitalise on new opportunities and secure its place as a trusted partner for organisations that are pivoting to hybrid and remote-working.”
Key findings from the study at a glance:
- 53% of respondents say COVID-19 has had a negative impact on their business. 25% indicated a positive impact
- 45% say customer print volumes have dropped due to the pandemic
- 34% say selling MPS has opened new opportunities to provide value-added services; 32% say it has helped build longer term customer relationships
- 37% say broader market disruption is the top channel concern for the coming year. Other key concerns were adapting to a managed services model (23%) and digital disruption (22%)
- Cloud is viewed as the leading growth area between now and 2022, followed by home printing services and contactless print provision
- Channel companies report satisfaction gaps with key elements of vendor programmes including market development funds (MDF), training and support for app development, and financial support.