Your Guide to Outsourcing

Document Scanning and Archiving

1. Overview

2. Identifying your needs –

Why go for digital storage?

Your plans

Managing changeover

Legal overview

3. What to look for in a document solution contractor –

Security

Ability

Solution and support capability

4. About Data Capture Solutions & further resources available

5. Resource: Your Scanning Assessment Sheet

6. Resource: Your Checklist for Finding an Outsourcing Partner

1. Overview

This White Paper is intended to form a guide that can be used by companies that are currently
considering scanning their archived documents and implementing a digital system for the
management of those files.

Whether you’re just contemplating moving towards such a system, undertaking a return on
investment analysis study, or about to sign up with an external contractor to help you with
your project, then this study provides valuable information.

By noting its recommendations you can help ensure that you’ve covered all bases and that your
choice of scanning solution and supplier really does suit both your needs and your budget.

At the end of the document you’ll find two sheets to print off which may be of help.The first,
‘Scanning Assessment Sheet’ helps you to pin down the needs of your company.With document
scanning there are many solutions or parts of solutions available to choose from, and any number
of willing suppliers. By analysing your own requirements, you are able to submit a better brief to
a group of potential contractors.Their subsequent recommendations based on that brief will
provide a better idea of the solutions available and the likely costs involved.

The second document, ‘Your Checklist for Finding an Outsourcing Partner’ covers the questions
you might ask a potential scanning contractor and helps you to analyse those results.

Moving towards document scanning doesn’t need to be a nightmare process. Successful transition
depends on you finding a supplier in which you have confidence and who can produce the
results you need.
2. Identifying your needs

2.1 Why go digital?

Businesses survived for years on paper-based systems, so why is everyone looking at
digital alternatives now?

Well, the nature of progress is that faster, more efficient alternatives arise for just about
everything. Ignoring such progress in business has proved terminal to many companies,
whilst those who’ve embraced technological developments have remained competitive
and often given themselves an edge over their rivals.

Digital systems allow us to streamline our filing, thereby freeing up our office space
and allowing staff to locate documents in a fraction of the time it took in the past.
Depending on the business, the benefits can be very different and the quantifiable
results can be vast.

For example, BAA is the company in charge of the UK’s main airport infrastructure.
Their archive of engineering drawings, plans, manuals and related documentation stretched
to 150,000 files stored at Heathrow alone.With so many drawings, many of which had been
mis-filed over the years, it took staff many hours to locate necessary files. BAA legend has
it that on occasions, it could take three days to hunt down the right drawing. By scanning
the files into a central database, a conservative estimate of the return on investment is a
saving in staff time of £200,000 per year with no more mis-filing errors.

For more day to day documents such as invoices and correspondence, by scanning at
post-room stage, filing centrally in a database and emailing across your computer network,
a business can save further hours of staff time shuffling paper across desks and departments,
documents can’t get lost and CRM systems become easier to manage.

In the past, when customer correspondence, orders or invoices have been filed in paper
systems, if a customer called with a query then you’d have to retrieve all the documentation
by hand and return their call. By filing electronically, their order information or any relevant
correspondence can be retrieved in moments and problems can be solved much faster.
Financially quantifying customer satisfaction is a harder task, but the benefits are obvious.
2. Identifying your needs continued

2.2 Why are you contemplating scanning? The wider plan for your business.
Generally speaking, the trigger behind the decision to assess electronic systems is a
combination of a number of factors. Financial Directors demand extensive justification
before committing to new investments, but when faced with the benefits associated with
the practice, the returns are hard to ignore.

The main triggers are:

Space saving – with office space at a premium, condensing filing cabinets and filing
rooms into your IT infrastructure makes sense

Document risk minimisation – fire, flood and recent terrorist threats place paper
documents at risk in the event of disaster. Rather than doubling the amount of paper
you pay to store and holding another copy elsewhere, scanning means that your files
are never at risk – as long as a simple copy of each CD is held at another secure site.
The back-up copies can be read from any PC.

Staff efficiency and better workflow – instead of spending (average figures from Gartner)
8 hours per week filing and retrieving paper documents, your staff can spend their time
doing what they do best, not shuffling paper.

Customer service – as detailed in section 2.1, holding all documents digitally helps you
keep better, more effective contact with your customers.

It may be that initially you had a concept of digitally archiving the documents held within
a specific department for one of the above reasons, but in reality, the benefits may be more
wide-reaching, not only within that department but across your organisation.

Assessing the wider potential would make more effective use of your scanning investment
in the longer term and has a definite bearing on your choice of document scanning contractor.
The successful company would need to consider future integration in whichever system
they implemented.
2. Identifying your needs continued

2.3 How are you planning on managing the changeover?

It’s not impossible for companies to embark on the process internally. Broadly speaking,
though, the resources consumed by the process rarely make in-house projects cost-effective
when compared to an outsourced provider. Remember the outsourcing mantra and repeat
it often – If a business process isn’t your core business activity, then someone else can do it better –
and probably more cheaply!

If you’re still tempted to try the work in-house, the Scanning Assessment Sheet will help you
to work out the resources needed. As a guide:

The scanning equipment needed is a costly investment, particularly if you have out-sized
or microfilm documents such as plans and drawings to scan

A business would have to put extensive staff research time into the right software
solution for managing the documents. In a competitive market, the experience of a
dedicated electronic document contractor can pay dividends.

Based on the number of documents you need to scan, both to clear the historic files and
on an ongoing additions basis, you’d need to take on additional staff or divert current
staff to handle the project

Those members of staff would need training, for which you’d probably need to go to
an outsource provider

IT staff would need to maintain the system and integrate it into the rest of your
infrastructure such as your intranet – more training and possibly additional technical staff

Increased workload for your legal team ensuring that your system holds documents
in such a way that they’re legally admissible both in court and to the Inland Revenue
or Customs & Excise

The above points illustrate why businesses turn to outsourced providers.

The service offered by an electronic document management (EDM) specialist can cover:
working on site to batch paper files removing staples & bindings
transporting documents scanning
indexing saving files to CD
providing software for viewing/managing documents training your staff
maintaining the system ensuring legalities are covered
holding secure back-up copies securely destroying obsolete paper files

An EDM provider should also be keen to work with you from the very beginning of your
project. Good planning prevents costly mistakes down the line.Their experience should
show you the most effective way to manage the changeover, taking into account your business
cycle and needs.There’s no use in trying to scan financial documents just before your year
end, but it’s surprising how many EDM companies fail to adopt workable schedules with
their clients. A full, realistic project timescale (again produced in conjunction with your
chosen supplier) will map out exact project progress and should be regularly reviewed.
2. Identifying your needs continued

2.4 The legal implications of document scanning

Addressed more fully in the DCS white paper ‘Document Scanning – The Law, Inland
Revenue & HM Customs’, this section provides a brief overview of the legal status of
scanned documents.

The law (via the Civil Evidence Act, 1995) makes no particular distinctions between
paper and digital documents, as long as the authenticity, or pedigree, of the document
can be verified.This hinges on various safeguards that companies need to take, including
comprehensive audit trails when documents are subject to changes or additions, and
the storage of documents as ‘read only’ files, often using functions such as verifiable
electronic signatures.

The aspirational procedures for businesses are detailed in the British Standard document
BSI DISC PD0008, relating entirely to electronic filing and best practice in the field.
A lengthy document to negotiate, good document scanning companies are familiar
with its recommendations and implement them for their clients throughout the
scanning process and within the resulting document management system.

Within Customs & Excise and the Inland Revenue, scanned documents are also valid
as evidence of procedures. As yet, guidelines are thin on the ground, but compliance
with the British Standard generally ensures that you meet their requirements.
It’s certainly easier to store six years’ worth of paperwork electronically!
3. What to look for in a document solution contractor

Analysing your needs should give you some idea of your basic requirements from an EDMS
provider.You’ll know pretty much if you’re looking for an archiving answer or for a more
pro-active, enterprise-wide document system.To an extent this will dictate the route you
take, as many companies specialise or restrict themselves to certain formats.

With EDMS providers that offer similar solutions, if price is taken out of the equation,
the difference often boils down to service and added value. Of course, adding price back into
the equation will often point specifically to certain providers that offer not only the solution
you need, but the service you ask for too.

3.1 Security
When you hand your documents, the lifeblood of your organisation, over to an external
contractor, you’ve got to be 100% certain that they’re going into good hands.

A scanning company should treat all information in the strictest of confidence.

Whether there’s legal information, customer details, patient records, building plans,
research material or government-classified material to scan, each file should be protected
and your privacy conserved.Where applicable the outsource company should also be
registered with the Data Protection Agency which is a legal requirement where they
are dealing with personal data.

Most documents will be taken to the EDMS contractor’s scanning bureau to be scanned
and indexed. Secure courier transport is the recommended method, with deliveries logged
in and out. All staff in contact with documents should be both police checked and should
work under separate confidentiality agreements.

For those classified documents or when a file absolutely can’t leave a site, there’s no
reason why scanning equipment can’t be transported to the client’s location for the work
to be completed.
3. What to look for in a document solution contractor continued

3.2 Ability
Whilst this may seem like an obvious point, it’s often taken for granted that an EDMS provider
can automatically meet a client’s needs when the reality may be somewhat different.

As a growing industry, there are new companies appearing every week.With little
experience, their advice and skills must be questioned. An established company must have
wide experience across a variety of industries – and they should be able to demonstrate
this to potential clients.

Not only is industry knowledge an important consideration, but your contractor should
be able to present evidence of work completed for companies with similar requirements.
Case studies and white papers are often available for exactly this purpose.

Other factors such as ISO 9001 accreditation across all areas of business should mean
that your EDMS contractor is a reputable company that maintains an excellent standard
of working practice.

A good scanning bureau should contain a wide variety of equipment. If your files include
some bizarre document sizes or unusual formats then the company you choose should be
able to scan everything within their facilities rather than outsourcing to a sub-contractor
unbeknown to you.

Rather than just offering a plain scanning service, certain files can actually be enhanced
by electronic transformation. As an example, some building drawings can be turned into
CAD files and rendered to make them more useful to you. Expert interpretation of such
drawings can reclaim further information and maximise their value. Such suggestions usually
arise from the scanning company, whose aim should be for the client to get the most value
from their investment.
3. What to look for in a document solution contractor continued

3.3 Solution and support capability

As is the case when any software sales are involved, suppliers often have links to certain
vendors and offer a restricted range of solutions. It’s important to identify those EDMS
companies with such links and take a good look at their products to be certain that one’s
right for your organisation.

Alternatively, independent retailers are able to pick and choose from all the products on the
market, and to use their experience and knowledge to recommend the right solution.

The last thing a business needs is a new solution that’s promising to revolutionise its processes
and for the provider not to build in adequate support from the beginning. An EDMS company
should assess the level of training required across the client’s staff and include this requirement
in the initial budget. It may be that most users won’t require significant training, but those in
charge of the system’s administration will need support and knowledge in order to make it
work to its full potential.

If you intend to build on the system with an in-house scanning decision, then using your
original EDMS supplier to provide the equipment is a recommended option.They can then
support the scanners and iron out any teething troubles.They can also ensure that your
system maintains the quality required by the British Standard. For a fully outsourced solution,
your EDMS supplier should offer the facility to provide an ongoing service to scan documents
as and when you need.This saves your investment in further technology infrastructure and
ensures that your scanning is done on state-of-the-art equipment.

Maintaining a long term relationship also has the benefit of necessary upgrades happening
quickly and seamlessly. An EDMS supplier should supply your files in a format that crosses
platforms and programmes to ensure that whichever way your technology goes, your initial
investment is never wasted.

Finally, amongst the technology, it’s easy to forget the personal touch. For long term benefits,
find a supplier who’s looking to develop long term client relationships and who’s not just out
for a ‘quick buck’ before disappearing into the mist. A single point of contact as your account
manager can ensure that the inevitable niggles are ironed out fast and that your project runs
to time and to budget. Supporting an organisation through major change involves more than
just technical support. An experienced company will anticipate problem areas and attempt
to smooth them before they occur.
4. About Data Capture Solutions

DCS is a dedicated document scanning company that counts the Ministry of Defence, BAA,
Transco and the Home Office amongst its clients. Helping companies preserve and manage
their documents is their core business.

From compact storage to complete document management solutions, Data Capture Solutions are
an independent, trusted industry name with ISO 9001 accreditation across all areas of business.

Friendly, knowledgeable staff provide a full service from initial consultation through to final delivery
and on-going support to ensure a workable solution and client satisfaction.

White Paper © Data Capture Solutions 2003

Data Capture Solutions Ltd

912 Yeovil Rd
Slough
Berkshire
SL1 4JG

Tel: 01753 616720

Fax: 01753 616721

www.datacapture.co.uk

Further resources available from DCS include:

White Papers
The real returns for businesses that implement electronic
document management.
Document scanning – the Law, Inland Revenue
and HM Customs

Case Study Series

Please ask for details

Industry Specific Studies

Please ask for details
5. Resource: Your Scanning Assessment

NB, whilst this is not an exhaustive list of considerations, it should provide an indication of the breadth of the project you wish to undertake.

Business name
Industry
Company focus/product

Your current stage in the process of moving to scanning:

Thinking about it, little action taken
ROI analysis study
Agreed in principle, searching for a supplier

The range of documents you want to scan:

Accounts paperwork Customer correspondence
General correspondence Research data
Human Resources files Building plans
Maintenance files Health & safety material
Other (please specify)

What format do these take and approximately how many of each are there?
A5 paper A4 paper A3 paper A2 paper
A1 paper A0 paper Microfilm
Other (please specify)

Why do you feel that an electronic storage facility might be more effective for your business?

What returns would you expect/hope it to achieve?

What reservations do you have about either the process or the results?

Are you contemplating fulfilling the work in-house?

Would you eventually want to store other material electronically, for example, rolling the
process out to other departments?

How do you want staff/public to access the information?

File sharing network
Intranet
Extranet
Website
Read-only CDs

Is security a particular concern?

What timescale are you hoping to follow, and do you have landmark stages in mind?

Any additional information that may be relevant to defining your basic EDM needs?
6. Your Checklist for Finding a Contracting Partner

Whilst the questions to the left hand side are pointers as to what you might consider when
assessing contractors, the column to the right has been left blank for you to add answers,
any notes and further questions.

Do you require a scanning and indexing

service only, or a full document
management system too?

Do you want practical involvement

or advice from a contractor at the
planning stages?

Do you envisage needing help from a

contractor to manage the changeover in
your organisation?

Would you require on-site

practical assistance to prepare documents
for scanning or to implement the solution?

What experience within your industry

should they have?

Do you have any particular security

concerns to address?

Do you place any importance on ISO 9000

accreditation in your suppliers?

Can your potential contractors provide an

in-house equipment list which would
satisfy your scanning demands?
6. Your Checklist for Finding a Contracting Partner continued

Do you require further system

functionality in your files – ie, hyperlinked
search facilities in .pdf files or CAD
transformation of plan drawings?

What level of ongoing support do you

expect/anticipate needing?

After the initial backlog has been

scanned would you like to continue to
scan in-house or through the contractor?

Is any of your documentation of a

‘personal’ nature ie. Does the contractor
require DPA registration?

Is it important that your index data

is accurate for searching? For example,
would double key data entry help ensure
data integrity?

Do you require post scanning storage

services for your documents of
digital data?

Do you require any shredding services

after scanning?

Do you place any importance on whether

the supplier is Home Office/Government
or Public Record Office approved?

Is ‘cost alone’ the priority or is

‘value for money with minimum risk’
more important?