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Document Imaging
In-house vs. Outsourcing: Making the Right Choice for Your Business
(Originally published in the May 2008 issue of document eNotes)
Keeping pace with business today means organizing and managing information
effectively and efficiently. One of the best ways is through document
imaging. Imaging makes your data available electronically, in a centrally
searchable system, and provides you with valuable business insights.
Organizations that are jumping on the bandwagon for the first time — or
which have had experiences with less-than-ideal imaging projects — may be
unsure whether to adopt imaging in-house, or to hire outsourced services.
As you evaluate your business needs, consider several basic factors:
• the cost of the solution;
• the image and indexing quality required;
• whether your files are primarily historical or active;
• your level of trust in the outsourcing service provider and your
in-house staff; and
• the importance of demonstrating compliance with regulations.
Since the capabilities inherent in any software, hardware, or outsourcing
solution vary considerably, clarifying your needs and expectations in each
area is vital.
Three basic options for document imaging (and a thousand variations)
Companies that have a knowledgeable IT staff and a project leader with a
clear vision often choose internal resources for their document imaging.
Others with overburdened workers, significant archived files, or
restrictive budgets may choose outsourcing. A third option can be a good
alternative for organizations that want to keep their imaging projects in
house, but lack the necessary human resources: in-sourcing scanning and
indexing services. In this scenario, a company invests in purchasing
document imaging software and scanning equipment to address long-term
needs, bringing in personnel to scan and index back files or handle
high-volume projects. Since in-sourced staff is temporary, this provides a
convenient answer to the question of what to do with added staff after
files are scanned and volumes drop off to reflect comparatively minimal
daily needs.
Sometimes the best solution involves all three: in-house imaging for
active files, outsourcing for back files, and in-sourced services for huge
projects (or to relieve overburdened staff). The variations are many. The
key is to be candid about your needs and expectations, as well as the time
and resources your staff will be able to commit to the project.
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Advantages
of outsourcing Two reasons companies choose outsourcing
are cost of ownership and the avoidance of complicated human
resources issues. Although robust imaging solutions today
are reasonable and produce a quick return, companies still
must evaluate vendors and have a solid understanding of technology
to make informed decisions about infrastructure needs. By
tapping into vendors who already have the software, decisions
about infrastructure, software configuration, and setup are
in the hands of the outsourcing company. Outsourcing firms
usually have solid, practiced, and swift setup routines, and
can start the scanning process quickly.
Challenges
with outsourcing Despite the advantages, there
can be challenges, and some important questions need to be
answered when a company considers outsourcing. Left unanswered,
they can cause serious problems. Most of the challenges with
outsourcing, especially if the firm is far away or overseas,
result from uncertainty about trust or concerns about security.
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This is
especially true if the company can index documents directly into your
network. If your IT staff does not monitor network activity, you may be an
unknowing victim of a security breach. If demonstrating regulatory
compliance is a concern for your business, then outsourcing has to be
managed closely — preferably by someone on your staff with solid IT
skills.
Training the outsourcing company on your indexing procedures and
entrusting them to ensure high quality images and consistent imaging can
be difficult. Companies that take pride in providing superior products and
services should have quality control procedures in place to ensure that
you receive what you expect. Nevertheless, you cannot guarantee that the
outsourcing company’s staff will consistently care about the image quality
and information accessibility as much as you will. Establishing a
check-and-balance system is wise.
Another problem commonly encountered with imaging off site is the
inability to scan documents on demand to keep business processes moving.
Documents typically are shipped somewhere, resulting in processing delays.
Questions reliant on specific files can remain temporarily unanswered as a
result of outsourcing. Costs and formats also may cause concerns. In some
cases, vendors charge for each imported image. They may also change
filenames from the original formats, creating an undesirable, proprietary
image collection. The situation can be frustrating–particularly when you
add to it the logistics of moving data back and forth.
Finally, questions may arise about the financial solidity of the
outsourcing company. What will happen to your files and data if the
company declares bankruptcy? Even if policies and procedures have been
established, reclaiming files and data can be trying. This is especially
true when the outsourcing company is thousands of miles from your
business, and litigation may be involved.
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Advantages of in-house imaging
In-house imaging usually presents a more viable long-term solution for
companies that will continue to receive and process paper on a regular
basis. By scanning documents in-house, shipping costs are eliminated, and
business processes dependent on files are expedited. Documents can be
scanned, indexed, and available almost immediately upon receipt, enabling
shorter turnaround times and better service. Scans that result in
questionable image quality can be recognized and addressed immediately.
Staff familiarity with the organization’s diverse document types is also
likely to result in more uniform indexing. This benefits everyone who will
ultimately search for data stored in the system. |
In organizations with significant active files containing sensitive
information, or where demonstration of compliance with regulations (such
as HIPAA, Sarbanes-Oxley, or the Gramm-Leach-Bliley Act) is vital,
in-house imaging may be the best option. Although trust can be an issue
internally as well as externally, management usually has a good sense of
its employees and their accountability. Furthermore, the organization’s IT
administrator can monitor security, taking advantage of the electronic
transaction trail provided by a document management system.
Challenges with in-house imaging The greatest challenges with imaging in-house are choosing vendors,
infrastructure and set-up, managing change, and system maintenance.
Companies with savvy IT staff usually have the knowledge and experience to
ask the right questions in choosing vendors and can handle imaging
systems. However, if complex integrations are part of current or future
plans, they may require specialized assistance. Understanding the
solution’s flexibility and scalability is important.
Choose a system that will grow with you. Select vendors who have the
resources available to assist with consulting, set-up, staff training,
integration, and maintenance, especially as your company grows and your
solution needs to adapt.
Summary Regardless of whether you choose in-house imaging, outsourcing, in-sourced
projects and services, or a combination of options, you should be
successful if you follow several basic principles. Evaluate your imaging
needs from a short-term and long-term perspective. Assemble a detailed
project plan and a thorough indexing plan that has input from your end
users. Be realistic about your staff resources and their capabilities.
Choose a stable product and trustworthy staff to administer your project.
Communicate clearly and frequently every step of the way. Imaging that
fails usually falls short in one of these areas. With these principles in
mind, you will walk the path to success.
Optical Image Technology offers an integrated suite of document management
and workflow products. To learn more about our products and services,
please visit our website at www.docfinity.com, call us at (800) 678-3241,
or contact us at info@docfinity.com.
Contributed By:
Laurel Sanders,
Optical Image Technology, Inc.
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