| Today, most companies are reducing their workforce | | | | estimate for cost ranges from $.75.00 to $2.00 per |
| and reviewing their operation costs to determine ways | | | | box per month. The cost of electronic storage is a |
| to help their bottom line. Document storage and | | | | fraction of that, but cost of conversion could range |
| retrieval could certainly be a legitimate area for a | | | | from $.01 to $.05 per document depending on level of |
| company to reduce their costs. However reducing | | | | indexing and type of documentation. |
| costs at the expense of system integrity could spell | | | | Scanning to images or to PDF formats are the two |
| business and financial disaster. | | | | most common methods of converting paper |
| Many companies have critical data that needs to be | | | | documents to electronic data. Paper documents, |
| kept, and must have access to them. Companies are | | | | microfilm, microfiche and aperture cards are the more |
| doing document storage to either reduce business | | | | common formats that are scanned to electronic data |
| risks or to maintain regulatory compliance. There are a | | | | today. |
| number of options that companies have to meet their | | | | Electronic documents are cheaper to store, require no |
| document storage and retrieval needs. | | | | physical space and are usually more efficient for |
| Internal vs. Outsourcing | | | | retrieval. No large warehouses are required and |
| While many organizations store and control documents | | | | storage and recovery is very fast. Still, even with |
| internally, there could be some compelling reasons for | | | | these inherent advantages, businesses may still need |
| outsourcing. One should consider the following factors: | | | | to seek the aid of third party services to help |
| - Space: As companies reduce and merge facilities, | | | | effectively manage electronic documentation. |
| space becomes a premium. Manufacturing, offices, | | | | Security: The headline in reads "Report: Cybercrime is |
| conference room, product inventory all require space. | | | | winning the Battle over Cyberlaw." The summary of |
| Document storage should probably be one of the first | | | | the posting was that cybercrime prevention systems |
| options considered for outsourcing when space is an | | | | are not keeping up with the perpetrators. This is |
| issue and may be one of least costly option to | | | | particularly true for the millions of desktops connected |
| consider. | | | | to the internet. We are virtually bombarded with |
| - Security: The needed security depends on the type | | | | viruses, malwares, phishing, hacking and other malicious |
| of information being stored. Internal systems may be | | | | attacks that could corrupt, damage or compromise |
| more lax than desired. Most companies are not in the | | | | data that are directly stored on our computers and |
| security business, so business records are very | | | | even indirectly for entities that these computers are |
| vulnerable to sabotage or compromise. On the other | | | | connected to. One report notes that most detection |
| hand, many document storage companies have | | | | software that is commercially available today is |
| state-of-the-art security systems that can comply with | | | | inadequate to protect computers from the latest |
| all the applicable regulations. These systems can be | | | | malware. The bottom line is that inadequate electronic |
| very expensive for a business to duplicate for there | | | | data security could spell disaster. Many electronic data |
| own documentation storage purposes. | | | | storage companies have the latest and most |
| - Disaster Protection/Recover: Of all the assets that | | | | impenetrable security systems including encryption and |
| businesses need to sustain operations, their critical data | | | | intrusion detection. Companies that rely on there own |
| may be the most difficult to recover and have the | | | | internal technology and systems to secure their |
| biggest consequences if lost. One needs to examine | | | | electronic data may be taking unwarranted risks. |
| how protected their internal document storage system | | | | When your electronic data is critical, you should |
| from fire or other natural or man-made disasters. | | | | consider outside services to store and protect your |
| Many reliable document storage companies have | | | | electronic data. |
| made significant investments to protect their facility | | | | Disaster Recover: Often times putting your documents |
| from these catastrophic occurrences. | | | | in electronic format can create a false sense of |
| - Retrieval: It does not do any good to store a | | | | security. Hard drives crash, resulting in potentially lost |
| document securely, if one could not retrieve it when | | | | data. Reliable electronic data back up systems are |
| needed. Manual systems can be very slow and costly, | | | | needed for critical data. Many businesses have a |
| where as a good document storage company uses | | | | simple manual backup system to a cd or dvd with on |
| the latest technologies in marking, organizing and | | | | site storage. These systems are usually not safe from |
| tracking. Bar coding and RFID technology are used to | | | | fire and employees may not follow the most rigorous |
| the fullest extent to ensure rapid and reliable retrieval. It | | | | standards in backing systems up. The worst time to |
| would not be cost effective for most businesses to | | | | find out if your back up system is inadequate is when |
| invest in this technology for controlling and retrieving | | | | you need it. Outsourcing your data back up can |
| their documentation. | | | | actually be more cost effective and certainly more |
| Paper vs. Electronic | | | | reliable. |
| There are many inherent advantages to electronic | | | | In today's economic crisis, companies may be tempted |
| storage over paper; however the cost of converting | | | | to reduce costs by skimping on document storage and |
| to electronic can be prohibitive. Even with scanning and | | | | retrieval systems. This tactic could result in |
| coding costs as low as a few cents per document, | | | | unacceptable business risks as well as actually |
| companies that have millions of documents can face a | | | | increasing overall costs. Proper planning and |
| significant cost for such a project. The cost to store | | | | assessment not only could keep your risks at an |
| paper documents off site is highly dependent on level | | | | acceptable level, but reduce both short term and long |
| of service and volume of documentation. A rough | | | | term costs. |