By Mike Murray, Group Executive Business Development at Itec South Africa
For a long time, our industry has leaned on tried-and-tested models like fixed-term print device rentals with steady annual increases. It has been the norm for decades. And in many ways, it worked. It gave vendors predictability and clients clarity on cost. But over time, business has changed. We must now acknowledge that the way we structure our contracts might need to change.
What is often missing in these conversations is the reality of how businesses actually operate. Cash flow is not linear. It moves in cycles. Whether it is a hospitality group that booms in summer, an accounting firm that peaks during tax season, or an agricultural supplier tied to planting and harvest, income does not always come in evenly. Yet, we continue to offer the same flat monthly payment, regardless of a client’s rhythm.
That can create tension. Not because the solution does not work, but because the structure does not flex. Clients feel the pinch during quieter months and sometimes question the value during lower-usage periods. In some cases, they are forced to renegotiate, cancel early, or downgrade because the terms did not fit. This rigidity feels increasingly out of step with how businesses make financial decisions today.
Moving away from CapEx
Across the country, we are speaking to CFOs, CIOs, and procurement leads who are under pressure to do more with less. Capital is tight. Budgets are under scrutiny. According to the South African Reserve Bank’s Quarterly Bulletin, real gross fixed capital formation declined by 0.7% in Q4 2024, a signal that businesses are holding back on long-term investment. But deferring spend is not always the smartest option, especially when operations depend on access to the right tools and infrastructure.
This is where a shift in procurement mindset is long overdue.
More and more, businesses are moving from CapEx-heavy approaches to models that treat infrastructure as a service, leasing, renting, or paying as they consume. According to Gartner, approximately 75% of organisations are prioritising cloud-based or managed services over once-off purchases, signalling a broader move toward OpEx-based procurement. It is not just about affordability. It is about aligning cost structures with business realities and freeing up shareholder capital for more strategic uses.
True managed print is not just about hardware or fixed contracts. What matters is giving clients the ability to consume services in a way that fits how their business runs, whether that is through leasing, renting, or paying per copy. For some industries, that could mean structuring payments to match cyclical cash flow. In other sectors, it might mean extending the life of existing assets at a lower cost. The principle is the same. Managed print should be about flexibility, predictable budgeting, and preserving capital so that businesses can invest in areas that deliver real return, not just in devices.
A modern approach
Let us take printing as a case in point. It is a classic grudge purchase. Nobody sees increased revenue from printing, but many still rely on it. The temptation is to sweat old assets further or delay upgrades because the return is not obvious. But that approach introduces hidden costs: inefficiencies, higher maintenance, downtime, and poor integration with newer digital workflows.
Instead, businesses can transition to a managed print model with flexible billing, such as per-page, per-month, or even structured seasonally. This is aligned to actual usage and cash flow. In some cases, where the existing fleet still meets business needs, it makes sense to restructure those assets at a lower cost and extend their useful life. Where new infrastructure is required, leasing enables that transition without tapping into CapEx.
And this logic applies well beyond print. Across security, communications, and workplace technologies, we are seeing a growing appetite for usage-based models that allow companies to modernise now and pay over time in ways that reflect their income cycles.
Faster turnaround
It also changes how procurement teams approach approvals. Instead of going back to the board for a new CapEx budget, teams can fund upgrades through structured monthly payments. That shifts the conversation from “can we afford it?” to “how do we structure this to work for our business?” For industries with cyclical cash flow, the model can be even more tailored. A resort might pay more during peak season and less in winter. A tax firm could front-load costs ahead of April. Structuring deals around the rhythm of the business is not only possible but is commercially sound.
This is not about offering discounts. It is about structuring smarter contracts. It requires systems that can accommodate flexible terms, sales teams who understand financial conversations, and a willingness to see procurement not as a transaction but as a partnership. We have already seen how this approach opens doors. It helps win clients who might otherwise walk away. It builds loyalty among those who feel seen and supported. And it turns a commoditised conversation into one focused on value.
At Itec South Africa, we are not claiming to have all the answers. But we are committed to asking better questions. One of them is this: what would it look like if our contracts worked harder for the client, not just for the business? In a time when every rand is being scrutinised, the most valuable partners are those who offer flexibility, not only in what they sell, but in how they help clients access it.
