How to reduce document management costs?

Document management is essential to maintaining information control in your company. Every document in a business is necessary for the effective exchange of information between the company and its major stakeholders. The repercussions for the company may be unpleasant or even devastating if a critical document is lost, stolen, damaged, or otherwise compromised.

Your company's operations and your overall financial status may be impacted by how effectively your document management system performs. Therefore, these systems usually come up with a lot of costs. You must now be asking if there is a method to reduce these expenses while yet keeping a productive document management system.

The good news is that yes, there’s a way you can reduce document management costs and it’s quite a simple one: Outsourcing. Your business will improve as a result of choosing the correct outsourcing provider, and you'll save money in the process. 

That’s it, no bad news! 

Outsourcing document management from a qualified outsourcing provider can satisfy several companies’ needs, including risk amortization, employee efficiency improvement, compliant practices, and most importantly, costs.

How will outsourcing reduce document management costs?

An effective provider of document management services will give you a continuous chain of custody for the duration of each document's lifecycle. Additionally, it will make sure your business complies with laws and regulations to maintain compliance and credibility. Of course, the most important advantage of outsourcing document management is that it helps cut down the extra expenditures on additional space, electricity, maintenance, labor costs, etc.

Here are a few key arguments for why document management outsourcing can reduce costs and help save money:


  • Business operational costs

An outsourced document management system can systematize workflows, creating a positive impact on all aspects of a company, including sales, operations, customer support, and even employee motivation. It goes without saying that this effectiveness makes a significant contribution to the organization's overall financial health.

Allowing a third party to handle the records not only gives to the businesses the chance to make better use of the extra space but also frees up time for tasks that are more likely to generate income. Additionally, businesses can use these benefits to drastically save costs without compromising the availability of the records they would need.

  • Costs of storage and supply

Office space is now a costly resource due to rising commercial real estate rates. Storage facilities like cabinets, files, and vaults are needed for physical document storage, which takes up room. Your finances may be constantly strained by the cost of purchasing and operating these storage facilities. The use of stationery and office supplies like paper, ink, toner, pens, and printers is also required for paper-based documentation. By hiring an outsource provider you’ll be using a digital document management system, avoiding all the costs mentioned above. 

  • Relocating: Printing and copying expenses

Relocating your company is a difficult process, particularly if you must relocate thousands of physical papers and storage cabinets and put them up again in a new location without losing or damaging any of them. Such a shift can be incredibly expensive in terms of time, labor, and resources! With digital documents provided by your outsourcing company, relocating can be as easy as logging into your document management system. You can stop producing tons of paper pages that result in confusion from many copies and versions.

As a result, you won't need to buy and maintain copiers or printing supplies, which will save you both time and money.

  • Postage and courier fees

Sending documents through mail or courier to co-workers or vendors in distant places can be time- and money-consuming in a distributed work environment. Remote access to documents is made possible by outsourced document management systems. As a result, papers can be shared with distant workers as soon as they are created or can even be created in collaboration with them.

  • Non-compliance costs

Businesses should know by now that if non-compliance is found, it can cost a business a lot in terms of penalties, legal fees, and lost revenue. Complying with document procedures might be impossible if your document system is paper-based, not secure enough, or doesn’t meet certain processes.

With the help of outsourcing document management, process flows will be streamlined, and you can assure auditors that the process meets compliance. Moving to a personalized document management system designed for your company will enhance customer interactions, flexibility, competitiveness, and peace of mind. These will all result in lower costs and higher revenues.

  • Costs related to security and disaster recovery

Physical documents provide problems with data security as well as storage and maintenance. Your company may suffer a loss due to a data breach when you least expect it. Businesses are compelled to make significant investments in installing and maintaining physical safety systems in order to stop these losses. Even such complex safety mechanisms are susceptible to failure in the event of catastrophes like fire or flooding. Outsourcing document management services will eliminate all these risks as you’ll be provided with a system that has built-in security features.

In order to prevent costly data breaches and cyber theft, a good document management system locks your documents away using a system of password requirements and access privileges (folder or document) only accessible by the computer user.

These systems will also offer an innovative solution for backup and recovery. Critical folders and files may be easily found and moved to a new storage location, like a cloud server or an off-site location. A document backup will eliminate the possibility of losing, accidentally deleting, or modifying documents.

  • Revenue loss as a result of poor customer service

The major kickback of a failed or delayed document retrieval is the loss it brings in customer goodwill and trust. A customer in today's fast-paced world has access to all the information he requires and expects immediate assistance. If you fall short of the customer's expectations, he will move on to a product or service that won't make him wait. By using an outsourced solution for document management, you may keep and get more customers.

  • Retrieval costs

Over time, the expenses incurred by a company in duplicating work and searching for lost documents can significantly reduce earnings. Document retrieval is made simpler and less expensive with professional document management services and cloud storage.

  • Revenue loss of productive time

The amount of time your staff spends looking for documents, creating copies and organizing files can be significantly decreased thanks to document management solutions. This time can be spent on core activities that are way more important for the company. Long-term, the sum of all these savings could have a significant impact on the financial stability of your company. Therefore, hiring a reputable document management service is your best bet if you want to cut costs while increasing revenues.

  • Affordable access to high-class technologies

When addressing document management requirements internally, organizations frequently choose to purchase less expensive technologies. If these businesses see rapid development, they may need to hire and train more employees right away, as well as possibly introduce new technology or software, which can be costly and time-consuming. In such a situation, collaborating with a secure document management supplier can assist in gaining immediate access to top-tier technology that in-house operations would not be able to afford at an affordable price.

  • Access to high-level expertise without spending a lot of money

When outsourcing, you are giving your business’ documents to a company specialized in managing them. Therefore, you will get to have high-level experts working for your business, without having to pay them as much as you would if you weren’t outsourcing them. Through outsourcing, you get to have access to senior professionals, while saving money at the same time.

  • Reduce storage space

Both purchasing and renting a business storage unit are becoming more expensive. Off-site file storage at a warehouse may be more affordable, but while making this decision, it is important to take your company's convenience and security into account.

By implementing a document management system, you can free up important office space for other business solutions. You will also not use any pricey file cabinets, storage bins, and boxes anymore.

How do I know if outsourcing document management is right for my business?

A document management system can be hosted on-site or in the cloud, usually offered by outsourcing service providers. Some things you should consider when deciding which approach is best for your organization are:

  • How do you plan to back up your data?
  • How does your business use its other technologies? Do you now have the necessary infrastructure in place, and host your company's email and business apps there, or do you make use of cloud-based services like Microsoft 365?
  • What level of document accessibility do you need?
  • What level of security do you require for document storage?
  • Do you have on-site or remote employees?

For all the reasons mentioned above, the trend is shifting more in favor of cloud-based solutions offered by outsourcing companies, than investing in and hosting infrastructure locally

Ready to outsource document management?

If you’re seeking a reliable, effective, and secure approach to handle the documents for your company, then you came to the right place. Contact us here and let’s have a chat together. Looking forward to hearing from you!

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