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Digital Production System (DPS) In office automation (Division of HCL Infosystem), trading of two types of DPS i s done which are as follows: Single Function Devices Multi-Function Devices (MFDs) Single Function Devices deals with printing only, both in mono and colour mode. These devices print on A4 size paper only. HCL is an exclusive distributor of Le xmark in this category. Lexmark Multi-Function Devices (MFDs) deals with scanning, photo-copying, fax and printi ng. Here devices cover a wide range of paper sizes which includes A3, A4, A0 and other sizes as well. HCL targets SMEs & Commercial Enterprises through MFDs. HC L is a distributor of Toshiba, Lexmark, Konica Minolta, Duplo, Kyocera Mita, Eps on & Contex Devices in MFDs section. In Digital Duplicator HCL has a tie up wit h Duplo. . Presentation Production System(PPS) This system is divided into three categories which are as follows: 1. Projectors, Visual Presentors and Smart boards 2. AVSI (Audio Visual System Integration) 3. Virtual Reality HCL provides projectors in both low end and high end frames. Hitachi has tie up with HCL for high end projectors distribution and Infocus for low cost projector s. HITACHI Projectors- CP-X3021WN, CP-X2521WN, CP-X2021WN. INFOCUS Projectors- IN100 Series. MPS (MANAGED PRINT SERVICES) MPS- Avenue for growth: With the overall economic environment becoming harder to predict and business dy namics changing every now and then, firms are looking to make do with lesser, gr owing but keeping costs in check, expanding their portfolio and geographical rea ch but in few additions in manpower- all this even as they strain to execute pro jects faster in an attempt to stay ahead of the competition. Effective management of print and electronic information help activate these key business requirement. From internal document workflow and print management to m anaging external communication with customers or stake holders, everything needs to be well managed and organized. Managed Print Services or MPS as it is called helps facilitate document manageme nt, in a way that they are printed and shared in accordance with the business ne eds of a company. As part of this model, copiers, printers, fax machines and dev ices are used under the management of a single vendor. Although MPS as a concept has been in existence for quite some time, companies h ave just started to adopt it on a larger scale. With the adoption of MPS, CIOs are free to focus on more strategic issues and al so are able to reduce cost at the same time. With more organizations continuing with the practice of corporate cost cutting, MPS is fast becoming a popular opti on for CIOs to consider as it improves workflow efficiency and reduces IT costs. Lately, there has been a significant increase in campaigns run by vendor compan ies to increase the adoption of MPS. Over the past couple of years, MPS has become a hot topic among companies in the imaging as well as government sector, including resellers, software developers,

aftermarket vendors and OEMs. The current economic situation has provided an in centive for companies to cut costs wherever they can. Companies incur huge expen ses on document printing and MPS programs can help these businesses track printi ng costs and devices and get printers back online faster when a malfunction occu rs. According to available industry figures, the MPS market grew 30-35% in 2011 with revenues growing to about Rs 600 crores. Bhaskar Joshi, Marketing Manager, Multifunctional Devices, Office Imaging Soluti ons (OIS) Division, Canon India, said, Last year proved to be a good year for Can on as it added about 21 new clients to its MPS business. For the industry too, w e saw about 30-35% growth. MPS was a major focus for office automation companies . The market that is divided into two segmentstransactional or bill printing and corporate. Given the situation, there has been some growth in the industry though for vendo rs it has been more of vertical growth than horizontal; meaning the existing cus tomers added on to their portfolio but there were not many new companies coming on board. "MPS is not purely about services and hardware. Rather, its a combination of both these aspects along with value-added services in software." Most hardware vendors and their end users define the service they deliver or rec eive as MPS, but what they are referring to is the traditional hardware agreemen t with a bit of management. The majority of MPS suppliers still believe that if they have software deployed at the client and if they intelligently handle deplo yment of assets, it makes it an MPS solution. MPS has also seen some new customers especially from retail and manufacturing. Road Ahead: Prediction for the year 2012-2014 MPS would be driven by the increased awareness and adoption of the Cloud. Within the printing industry, the saving of information on a server and access and sha ring via the Internet points to the need for increased collaboration within a co mpany, especially from a print management perspective. "MPS offers solutions through smart printing devices that allow companies to tra nsfer files and collaborate online." -- Shailendra Aragula, Country Manager, Le xmark India As the need for the management and sharing of content becomes a necessity, MPS of fers a host of solutions through intelligent printing devices that allow compani es to transfer files and collaborate online in a more effective manner. This has accelerated the uptake of MPS as a result of the managed print services utilitybased model. We expect it to pick up exponentially this year, said Shailendra Ara gula, Country Manager, Lexmark India. Another key driver for the use of MPS is the increasing awareness among organiza tions that they need to move beyond rudimentary print solutions and focus on dat a management and protection. As issues like the security of information within a n organization become pertinent, the management of content from print devices is now a priority, further driving demand for MPS capabilities like software maint enance and professional services. Joshi of Canon said, We are looking at almost 30% growth in 2012 and the entire l arge enterprise segment in India will be moving from CAPEX to OPEX model owing t o cost cutting and this would fuel growth in the MPS segment. Competition too is gearing up and many new things are expected to happen. Currently, MPS in India is restricted to only printing pages. Going forward more value-added services (VAS) will be offered including mailroom services, wherein when a company gives a print command it not just prints the document but will a lso mail the same to the customer and subsequently gets a receipt from him that ensures that the bill has been received. According to the Asia Pacific Managed Print Services 2010-2014 Forecast and Anal ysis: New Challenges in a New Economy, IDC predicts that the Asia Pacific (exclu ding Japan) or APEJ MPS market will grow at a compound annual growth rate of 17 percent in the period 2010-2014. The market will surpass US$990 million in 2014.

Challenges Though the sector has seen some high double digit growth but then it is also mar red by a few challenges. To begin with the gray market machines that come to Ind ia pose a threat to the established players with their cheap pricing. Secondly, ex pectations of large enterprises are increasing leading to a rush in developing a ffordable solutions. Companies want affordable solutions given the economic conditions in the country, said Joshi of Canon. Security remains in question. The faith in such software is yet to develop. Furt her, like any other IT deployment, this too is plagued by concerns on RoI. Peopl e want a quicker RoI and want to have shorter agreements with SLAs ranging from one to two years or even shorter. Companies across India have placed a consistent focus on efficiency and doing mo re with less. This is not expected to change in the near future. The trend to of fset unnecessary expenses is set to drive the popularity of MPS. In line with this expectation, companies need to continuously develop intelligen t document solutions and innovative software that enables a business to optimize processes in a sustainable and scalable manner. To do more with less, vendors a lso need to extend their capabilities to provide content management services. This year, it is expected that people would go for solutions that would help the m reduce their printing budgets. The sluggish economy helped fuel the growth and acceptance of managed print serv ices. Although many aspects of MPS have been available for a decade or more, end users are beginning to understand the concept. The prospect of saving money by using managed print services has convinced many businesses to consider trying th ese services, and vendors need to know what aspects of MPS appeal to these compa nies. Lastly, with growing Internet penetration it is expected that there will b e more physical data and hence the need to organize and digitize them would prov e to be a boon for MPS.