Staples Brings IT On to Wring Profits from Out-Sourcing
Staples (SPLS) is looking to do IT. That is, it hopes to capitalize on information technology opportunities as more companies seek to outsource more support functions.
Ironically, Sam's Club is a conspicuous of the outsourcing trend. The warehouse cluboutsourced its product demonstration function last month to Shopper Events, which already is working with parent Walmart (WMT).
Staples Advantage, a division of the office products retailer, has launched a new operation, Staples Technology Solutions, to provide IT services to business. While it is offering an array of technology hardware, at heart Staples Technology Solutions is a service operation that can act as an extension of in-house IT departments. It's even prepared to run a client's entire IT operation.
Joe Kalinoski, vice president of finance at Staples Technology Solutions, explained the initiative to BNET
BNET: How has the services business at Staples evolved, and how did it arrive at the Staples Technology Solutions program?
Kalinoski: We understand that technology is playing an increasingly large role in how businesses of all sizes function. As the world's largest office products company, Staples' ability to augment our core services with a strong IT services solution makes strategic sense. Staples Advantage, our business-to-business division, has always been able to deliver everyday office technology, such as printers, scanners, and shredders to our business customers. To remain competitive, our current and future customers also need technology services that match their critical business challenges.
Through several strategic acquisitions, including the acquisition of Corporate Express in 2008 and Thrive Networks in 2006, Staples is fulfilling its mission of becoming a one-source supplier of office products and services, from everyday office supplies to technology and print solutions and managed IT services. The formal introduction of Staples Technology Solutions brings these offerings together under one division for Staples Advantage customers.
Today, Staples Technology Solutions offers our business customers â€" from small- and medium-sized businesses (SMBs) to Fortune 1000 corporations â€" one of the widest selections of technology equipment, supplies and services in the industry. This product and services breath and depth means customers never have to rely on multiple vendors to get exactly what they need.
BNET: What kinds of businesses are turning to Staples for technology support?
Kalinoski: Staples Technology Solutions can meet the needs of most organizations, of many sizes, in varying market segments. We serve a significant number of Fortune 500-level customers and more than 300 SMB clients with best-of-breed technology solutions from partners, including HP, Fuji, IBM, Sun and EMC.
Today, Staples Technology Solutions offers flexible offerings by customer size. All of our business-to-business customers can take advantage of our data center solutions, printer management services, hardware offerings, and everyday desktop technology products. For SMBs specifically, that is, companies with 10 to 250 employees, we offer a comprehensive array of IT services â€" including technology consulting, disaster recovery planning, and remote support â€" that are tailored to specific industry requirements.
BNET: Has the recession made such services more important as companies that have cut back on staff?
Kalinoski: Most definitely in the SMB market. SMBs face many of the same challenges as large enterprises when it comes to IT management. They have increasingly complex systems that they rely on to drive their businesses and gain competitive advantage. Operating and maintaining a complex IT infrastructure requires the necessary skills and investment, but getting the right staff at an affordable price can be a problem. And for many SMBs, hiring additional IT staff is simply cost-prohibitive. Outsourcing IT functions with a company like Staples Technology Solutions is a way for SMBs to gain 'big company' IT capabilities without the costs and management overhead associated with hiring staff. It can also enhance an IT staff by filling gaps and offering services that are otherwise unavailable.
BNET: What is the relationship between Staples Technology Solutions and/or the retail business?
Kalinoski: Currently, there is no formal relationship between Staples Technology Solutions and Staples' retail operations outside of being respective divisions within the organization's corporate structure.
BNET: What about consumers who might want this kind of support for their home or home business?
Kalinoski: Staples does have an offering for that growing market segment, and it's called EasyTech. While EasyTech offers retail customers and consumers day-to-day technology services, Staples Technology Solutions provides 24/7 network monitoring and user support, and delivers strategic technology consulting and network upgrades to small to mid-sized businesses.