Managed Print Services Business Case: The Definitive Template for NZ Organisations

How to calculate the business case for managed print services, measure total cost of ownership, identify savings and build a CFO-ready case for change in New Zealand.

For many organisations, printing is treated as a collection of small operational expenses rather than a technology environment that can be measured, governed and optimised.

A printer is purchased here. Toner is ordered there. A service call is raised when something breaks. Employees print unnecessarily. IT teams spend time troubleshooting devices. Finance sees hardware, consumables and service costs appearing across different budgets.

Individually, these costs can look insignificant.

Collectively, they can create a material and poorly controlled technology expense.

A Managed Print Services (MPS) business case brings those costs together. It establishes the current-state cost of printing, identifies opportunities to reduce waste and administration, assesses security and compliance risks, and calculates the potential financial return from optimising the print environment.

For New Zealand organisations, the business case should also consider the security of personal information under the Privacy Act 2020, particularly Information Privacy Principle 5, which requires organisations to use reasonable safeguards to protect personal information against loss, unauthorised access, use, modification, disclosure and other misuse.

This guide provides a practical framework for building that business case, including a ROI model, cost categories, worked organisational examples and a methodology that CFOs, finance teams, IT leaders and procurement teams can use to evaluate MPS.

Summary: The MPS Business Case Benchmark at a Glance

Important: These figures are planning benchmarks rather than guaranteed savings. Actual MPS savings depend on device numbers, print volumes, consumable costs, service arrangements, fleet age, user behaviour, security requirements and the organisation's existing processes.

What Is a Managed Print Services Business Case?

A managed print services business case is a financial and operational assessment that determines whether an organisation can achieve better value, control and risk management by changing how its print environment is managed.

A robust business case should answer five questions:

1. What are we spending on printing today?
2. What is the true total cost of ownership?
3. Where are the biggest sources of waste or inefficiency?
4. What would an optimised environment cost?
5. What financial, operational and risk benefits would justify the investment?

The most important distinction is between visible print costs and total print costs.

A CFO may see the purchase price of a multifunction printer or the monthly lease payment. That does not necessarily represent the organisation's actual cost of printing.

A complete calculation should consider:

Hardware + consumables + service + support + administration + downtime + IT time + paper + energy + security + unnecessary printing = Total Cost of Ownership

This is why an MPS business case should begin with the organisation's existing environment rather than a particular printer model.

Download the Managed Print Services Business Case Template

The downloadable Managed Print Services Business Case Template is designed to consolidate the costs and assumptions required to build a financial case for print optimisation.

The model can be used to compare the current environment with a proposed managed print environment and identify the financial levers most likely to influence the result.

The model considers:

• Current printer and multifunction device numbers
• Hardware acquisition or leasing costs
• Toner and consumables
• Service and maintenance
• Paper consumption
• Print volumes
• Colour versus monochrome printing
• IT and administration time
• Device consolidation
• Fleet right-sizing
• Lease versus buy considerations
• Rules-based printing
• Duplex-by-default printing
• Print management software
• Security controls
• Projected annual operating costs
• Potential annual savings
• Estimated payback period

Why Total Cost of Ownership matters

The purchase price of a printer is only one component of its cost.

For example, an organisation could purchase an inexpensive desktop printer but subsequently spend significantly more on cartridges, maintenance, staff administration and device replacement.

A TCO model makes those costs visible.

The objective is not simply to identify the cheapest device.

The objective is to identify the lowest sustainable cost of operating the print environment while meeting business, security and user requirements.

How to Calculate the Business Case for Managed Print

A practical MPS business case can be built using six stages.

Step 1: Establish the current fleet

Create a complete inventory of printing and scanning devices.

Record:

• Manufacturer
• Model
• Location
• Device type
• Age
• Monthly print volume
• Colour/mono volume
• Department
• Number of users served
• Contract status
• Lease cost
• Service cost
• Toner cost
• Known reliability issues

Do not limit the assessment to centrally managed multifunction printers.

Desktop printers, departmental printers and devices purchased independently by business units can represent a significant source of fragmented cost.

Step 2: Calculate current annual print expenditure

Bring all relevant expenditure into one model.

A simple calculation is:

Annual Print Cost = Hardware + Toner + Service + Paper + Support + Administration + Other Print Costs

Where possible, use actual invoices and usage data rather than estimates.

For example:

This creates the financial baseline against which a proposed MPS environment can be measured.

Step 3: Identify the cost of inefficiency

The next question is not simply "How much do we spend?"

It is:

"Why are we spending it?"

Common sources of inefficiency include:

Too many devices

Multiple desktop printers can create unnecessary hardware, toner and service costs.

Under-utilised devices

A printer may be consuming budget while producing relatively few pages.

Over-utilised devices

Conversely, a heavily used device may create congestion, downtime and increased support requirements.

Uncontrolled colour printing

Colour pages generally carry a higher cost than monochrome pages. Organisations can reduce unnecessary colour output by applying rules that default appropriate documents to monochrome.

Single-sided printing

Duplex-by-default settings can reduce paper consumption where documents do not require single-sided output.

Manual toner ordering

Employees or administrators manually monitoring toner levels can create unnecessary workload, stockpiling or emergency orders.

Reactive maintenance

Waiting until a device fails can create downtime and urgent service costs.

Unmanaged desktop printers

Personal or departmental printers can operate outside central procurement, security and support processes.

Excessive IT involvement

IT teams can spend time dealing with printer drivers, connectivity, device failures, queues and consumables instead of higher-value technology priorities.

Step 4: Model the optimised environment

Once the current state is understood, model what the environment could look like.

Potential interventions include:

• Consolidating devices
• Replacing inefficient or obsolete hardware
• Moving from desktop printers to shared multifunction devices
• Introducing automated supplies management
• Implementing secure print release
• Applying print policies
• Defaulting suitable documents to duplex
• Defaulting appropriate output to monochrome
• Introducing print management software
• Centralising device monitoring
• Establishing proactive service
• Standardising devices across locations
• Creating centralised reporting

The goal is not to reduce printer numbers at any cost.

The goal is to create the right number and type of devices for the organisation's actual requirements.

Step 5: Calculate the potential return

A simple MPS ROI calculation is:

Annual Savings = Current Annual TCO − Projected MPS Annual TCO

Then:

ROI % = Annual Net Benefit ÷ MPS Investment × 100

And:

Payback Period = MPS Investment ÷ Annual Net Benefit

For CFOs, however, ROI should not be the only measure.

A stronger business case combines:

Financial return + productivity + risk reduction + governance + user experience

This makes the case more resilient when direct print savings alone do not tell the whole story.

Step 6: Establish 30–90 day success measures

A successful MPS project should be measurable after implementation.

Useful measures include:

• Print volume
• Colour print percentage
• Duplex percentage
• Cost per page
• Cost per device
• Toner consumption
• Service incidents
• Device downtime
• IT support hours
• Number of devices
• Unmanaged devices
• Secure-print adoption
• Print-related security incidents
• Monthly print expenditure

A baseline established before implementation makes it possible to demonstrate whether the business case has delivered its expected result.

Worked Examples: What Could MPS Mean for Different Organisation Sizes?

The financial impact of managed print varies significantly depending on organisational size, print volumes, fleet complexity and the starting environment.

The following examples are illustrative planning scenarios, not guaranteed savings.

These examples illustrate an important point:

The larger and more fragmented the print environment, the greater the potential value of centralised governance.

However, organisational size alone does not determine the business case. A 50-person organisation with high print volumes and multiple unmanaged devices may have a stronger MPS case than a 250-person organisation with a highly efficient fleet.

Example 1: 50-Staff Organisation

A 50-person organisation might operate five to eight desktop printers across different departments.

The devices may have been purchased at different times, with different cartridge types, service arrangements and replacement cycles.

The resulting environment can create:

• Multiple toner suppliers
• Different device drivers
• Unpredictable replacement costs
• Manual toner ordering
• Inconsistent security controls
• Excessive desktop printing
• Limited visibility of total print expenditure

An MPS approach could consolidate the environment around two high-efficiency A3 multifunction devices.

The financial objective is not necessarily to eliminate printing.

It is to make printing predictable, measurable and easier to manage.

An illustrative annual saving of $1,500–$3,000 could come from a combination of reduced hardware duplication, lower consumable costs, less administration and reduced support requirements.

Example 2: 250-Staff Organisation

At approximately 250 employees, print environments often become more fragmented.

There may be:

• Departmental printers
• Shared multifunction devices
• Older equipment
• Multiple suppliers
• Different service agreements
• Uncontrolled colour printing
• Limited print reporting
• Inconsistent security settings

The business case becomes more compelling when the organisation considers the administrative cost of fragmentation.

A fleet right-sizing exercise combined with print management software can provide central visibility of devices, users and print volumes.

Rules-based printing can also help control unnecessary output.

An illustrative saving of $8,000–$15,000 per year could be achieved depending on the organisation's starting point.

The business case should also quantify the value of reducing IT administration.

Example 3: 1,000-Staff Enterprise

Large organisations often have a different challenge.

The issue may not be the cost of an individual printer.

It is governance at scale.

A 1,000-person organisation may have:

• Multiple offices
• Different device fleets
• Legacy equipment
• Multiple contracts
• Decentralised procurement
• High print volumes
• Complex user requirements
• Multiple IT environments
• Different security policies
• Limited visibility across locations

A managed print strategy can introduce centralised fleet governance.

This can include:

• Standardised devices
• Centralised reporting
• Secure print release
• User authentication
• Proactive monitoring
• Automated supplies
• Standard security configurations
• Consolidated service
• Multi-site reporting

An illustrative annual saving of $35,000–$70,000+ may be achievable in a sufficiently fragmented environment.

The bigger financial opportunity, however, can be the combination of cost control, governance and reduced operational complexity.

The Cost of Doing Nothing

One of the most overlooked parts of a technology business case is the cost of inaction.

An organisation does not necessarily maintain the status quo when it decides not to invest.

The existing environment continues to generate costs.

These costs may simply remain hidden across different budgets.

1. Unmanaged hardware

Older devices can become increasingly expensive to operate.

They may require:

• More frequent repairs
• Replacement parts
• Older consumables
• Additional support
• Emergency replacement

Capital expenditure can also become unpredictable when devices fail unexpectedly.

2. Supplies waste

Manual toner management can create two opposing problems.

Too much stock: capital is tied up in consumables that may not be needed immediately.

Too little stock: a device runs out of toner and employees cannot print until an urgent replacement arrives.

Automated supplies monitoring can help make replenishment more predictable.

3. IT administration

Printer-related support can consume IT resources through:

• Device configuration
• Driver installation
• Network connectivity
• Print queues
• Device failures
• User troubleshooting
• Toner issues
• Software configuration

Even a few hours per month can represent a meaningful annual cost.

For example, if an organisation spends 15 IT hours per month on print-related tasks, that represents 180 hours per year.

The business case should assign an internal cost to that time where possible.

Print Security and the NZ Privacy Act 2020

Printing can become part of an organisation's information-security environment because documents sent to printers may contain personal, financial, employment, customer, health or commercially sensitive information.

New Zealand's Privacy Act 2020 includes Information Privacy Principle 5, which requires organisations to use reasonable safeguards to protect personal information against loss, unauthorised access, use, modification, disclosure or other misuse.

That makes print security relevant to a wider privacy and information-governance strategy.

For example, organisations can consider controls such as:

• User authentication
• Secure print release
• PIN or card-based release
• Access controls
• Encryption
• Device hardening
• Secure scanning
• Audit trails
• Automatic deletion of stored print jobs
• Device disposal procedures
• Centralised security management

The objective is to reduce the likelihood that sensitive information is left unattended or accessed by an unauthorised person.

Importantly, not every print-security incident is a notifiable privacy breach.

Under the Privacy Act, a notifiable privacy breach involves unauthorised access, disclosure, alteration, loss or destruction of personal information and a reasonable belief that serious harm has occurred or is likely to occur.

Where a breach is notifiable, organisations must notify the Privacy Commissioner and affected individuals as soon as practicable. The Office of the Privacy Commissioner says its expectation is that notification occurs within 72 hours of becoming aware that a breach is notifiable.

This creates an important business-case consideration:

Print security is not simply an IT feature. It can form part of the organisation's wider privacy risk-management framework.

From ROI to Fleet Governance

Achieving savings once is different from maintaining those savings over time.

This is why fleet governance should be part of the MPS business case.

Without ongoing controls, print volumes can gradually increase again, devices can proliferate and departments can revert to unmanaged purchasing.

Rules-based printing

Print management can establish policies such as:

• Duplex by default
• Mono by default
• Colour printing restricted to appropriate users
• Large print jobs redirected to efficient devices
• Secure release for sensitive documents
• User-level reporting
• Departmental cost allocation

These policies turn the business case from a one-off cost-reduction exercise into an ongoing governance programme.

Why Secure Print Release Matters

One of the simplest print-security controls is secure print release.

Instead of sending a document directly to a printer where it may remain unattended, the user authenticates at the device before the document is released.

This can help reduce:

• Uncollected documents
• Confidential information left on output trays
• Accidental document collection
• Unnecessary reprinting
• Visibility gaps around who printed a document

For organisations handling significant quantities of personal or commercially sensitive information, secure release can form part of a broader defence-in-depth approach.

Measuring the Business Case After Implementation

The business case should not finish when the contract is signed.

Establish a baseline before implementation and measure the same metrics afterwards.

Recommended MPS KPI dashboard

This turns an MPS project into a measurable business improvement programme.

The CFO's MPS Business Case Checklist

Before presenting an MPS proposal to finance or senior leadership, ensure the business case includes:

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How to Build Your MPS Business Case in 30–90 Days

A practical implementation programme can be structured around measurable milestones.

Days 1–30: Establish the baseline

Audit:

• Devices
• Locations
• Print volumes
• Toner expenditure
• Service costs
• Hardware costs
• IT support
• User requirements

The objective is to establish the current-state TCO.

Days 31–60: Identify optimisation opportunities

Analyse:

• Under-utilised devices
• Over-utilised devices
• Duplicate equipment
• Unnecessary colour printing
• Excessive single-sided printing
• Security gaps
• Manual processes
• Support costs

Then model the future-state environment.

Days 61–90: Implement and measure

Introduce agreed changes and establish reporting for:

• Cost
• Volume
• Device utilisation
• IT time
• Security
• Service
• User adoption

The 30–90 day period should be treated as an initial measurement window rather than a guarantee that every organisation will achieve a particular ROI within that timeframe.

Is Managed Print Services Worth It?

For organisations with fragmented, unmanaged or high-cost print environments, MPS can provide value beyond reducing the price of toner or hardware.

The strongest business cases combine several benefits:

Lower TCO

Reduce unnecessary hardware, consumables, service and administrative costs.

Better productivity

Reduce printer-related downtime and IT intervention.

Greater control

Create central visibility of devices, users, volumes and expenditure.

Improved security

Introduce controls such as authentication, secure release and auditability.

Privacy risk management

Support reasonable safeguards around personal information handled through print and scanning environments, consistent with the organisation's wider Privacy Act 2020 obligations.

Predictable budgeting

Replace fragmented and reactive expenditure with a more structured operating model.

When MPS May Not Be the Right Investment

A credible business case should also identify situations where MPS may deliver limited incremental value.

For example, an organisation may already have:

• A small and highly efficient fleet
• Very low print volumes
• Centralised procurement
• Automated supplies management
• Strong security controls
• Minimal IT involvement
• Modern devices
• Clear print policies

In these circumstances, the opportunity may be optimisation rather than a complete managed print transformation.

The purpose of an MPS assessment should therefore be to identify the right operating model, not to assume that every organisation needs the same solution.

Building the Business Case: A Simple Formula

For organisations that need a straightforward starting point, use this framework:

Current-State TCO

Hardware + Consumables + Service + Paper + IT + Administration + Downtime

↓

Optimisation Opportunities

Right-size + Consolidate + Automate + Secure + Govern

↓

Future-State TCO

Managed Hardware + Service + Consumables + Software + Administration

↓

Business Case

Current-State TCO − Future-State TCO = Potential Annual Benefit

Then assess:

Potential Annual Benefit + Productivity Gains + Risk Reduction + Governance Benefits

against the required investment.

This provides a more complete view than comparing printer purchase prices alone.

Your Next Steps

Building an MPS business case does not require perfect information on day one.

Start with the data you already have.

Step 1: Audit your current fleet

Document every printer and multifunction device, its location, age, usage, consumables and service arrangements.

Step 2: Establish your current TCO

Bring hardware, toner, service, paper and internal administration costs into one model.

Step 3: Identify the biggest cost and risk drivers

Look for fragmented devices, unmanaged printing, excessive colour output, manual processes, security gaps and high IT involvement.

Step 4: Download the MPS business case template

Use the ROI model to compare your current environment with potential future-state scenarios.

Step 5: Define measurable success criteria

Set targets for cost, print volume, IT time, device numbers, security and governance.

Step 6: Talk to an MPS specialist

A detailed fleet assessment can validate the baseline, identify optimisation opportunities and determine whether managed print services are financially appropriate for your organisation.

Conclusion: Make Print a Business Decision, Not a Printer Decision

Printing may be a relatively small line item on an organisation's technology budget, but the true cost can extend across hardware, consumables, service, IT, productivity, security and administration.

That is why the strongest MPS business case does not ask:

"How much does a new printer cost?"

It asks:

"What does our entire print environment cost today, what risks and inefficiencies exist, and what would a better operating model deliver?"

For New Zealand organisations, the business case should also consider the protection of personal information and the organisation's obligations under the Privacy Act 2020. Information Privacy Principle 5 requires reasonable safeguards against loss, unauthorised access, use, modification, disclosure and other misuse of personal information.

A well-designed MPS programme can therefore deliver more than a lower print bill.

It can provide lower total cost of ownership, greater visibility, predictable budgeting, reduced administrative overhead, stronger print governance and improved security controls.

The first step is simple:

Measure what you have today. Then build the business case from the numbers.

Download the Managed Print Services Business Case Template

Use the NZ-focused business case spreadsheet to calculate your current print TCO, model optimisation opportunities and develop a CFO-ready case for change.

[Download the Managed Print Services Business Case Template]

Want to understand what your current print environment could be costing?

Talk to Sharp New Zealand about a managed print assessment and identify the opportunities to reduce cost, improve control and create a more secure, efficient workplace.

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