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The Real Cost of Paper: Why Government Must Digitize Now

Written by Molly Vernarecci | Apr 29, 2025 12:00:00 PM

If you work in the public sector, you’ve probably felt it: the squeeze. Budgets are tighter. Headcount is frozen. But the pressure to do more? It’s only growing.

From increasing transparency mandates and audits to mounting cybersecurity concerns and aging infrastructure, government agencies at all levels are being pushed to move faster and smarter, often without the resources to match. And at the center of this operational gridlock? Paper.

Yes, paper.

Mountains of it. Stored in basements, stuffed in filing cabinets, boxed up in off-site storage facilities, and even tucked away in limestone mines. It slows down service delivery, increases compliance risks, and eats away at resources.

Agencies across federal, state, and local levels handle a wide variety of critical records, including:

  • Tax filings, financial reports, and business licenses
  • Maps, blueprints, and geographic data
  • Research reports, unemployment claims, and benefits records
  • Birth, death, and marriage certificates
  • Building permits, public regulations, and inspection records
  • Emails, electronic messages, and digital media like photographs and audio files

From legacy archives to daily operations, this paper trail is massive and mission-critical. Meanwhile, federal and state budgets are uncertain, if not gridlocked, and staffing shortages are growing. Yet, the public’s expectations for digital services are only rising, and staff are still expected to respond to Freedom of Information Act (FOIA) requests, conduct audits, manage records, and meet retention schedules.

Government agencies are drowning in paper, and it’s time to tackle the overload head-on.

The Case for Digitization: Why Now?

Going paperless offers significant advantages for any organization, but for agencies tasked with managing thousands of records, it’s not just beneficial, it’s essential.

Manual document handling – searching for a single file among stacks of paper, manually scanning records, physically routing documents, or trying to maintain organized files – drains valuable resources. These paper-based processes are slow, inefficient, and leave too much room for human error. By digitizing records, agencies can instantly access, manage, and share documents with just a few clicks. Document digitization not only accelerates workflows but also empowers staff to focus on more strategic, high-value work that drives real impact.

Here’s why more government agencies are choosing to go paperless:

Budgets are tight, and every manual task adds up

As fiscal planning grows more cautious across state, local, and federal levels, agencies are under pressure to stretch their resources further. Manual document handling, printing, filing, and retrieval are time-intensive and drain human resources, even if the line items don’t show up in the budget.

Institutional knowledge is going out the door

As retirements rise and public sector hiring remains stagnant, decades of institutional knowledge are vanishing. Key information is often tucked away in paper files that only a handful of long-time employees know where to find or how to interpret. When those employees move on, so does the context, leaving departments vulnerable to operational disruption and compliance gaps.

Transparency requirements are growing

Requests under FOIA and other public access laws are increasing, but responding with speed and accuracy is difficult when documents live in dozens of file cabinets, boxes, or paper and digital formats. Agencies are legally obligated to provide quick, traceable responses, and digitization can streamline response times and reduce legal exposure.

Security and governance aren’t optional

Paper records are easy to lose, misplace, or damage, and even harder to track down. Even digital records stored across fragmented systems can go missing without proper oversight. Digitization brings order to chaos. With indexed files, role-based access controls, cloud-based access, and detailed audit trails, agencies can strengthen security, streamline governance, and meet compliance with confidence. When done right, digitization doesn’t just reduce risk, it brings security and governance front and center.

Disaster vulnerability is real

Paper is highly susceptible to destruction from fires, floods, mold, and other environmental risks. When records are lost in a disaster, there’s often no recovery, just consequences. Digitization ensures your most critical records are preserved, backed up, and accessible even in emergencies. 

Digital transformation unlocks real efficiency

Digitization is just the beginning – real digital transformation happens when you turn your documents into powerful data. Once records are digitized, agencies can automatically classify, extract, and route information at scale using AI. This isn't future tech, it’s available now and proven today with intelligent document processing (IDP). By automating repetitive tasks, IDP increases the accuracy of extracted data, accelerates decision-making, and frees teams to focus on high-impact work.

Think Digitization is Too Expensive? Think Again.

Worried about the price tag on digitization? The cost of doing nothing is even higher. 

Many public sector agencies delay digital transformation because of perceived upfront expenses, but the hidden costs of sticking with paper are compounding every day.

According to IDC, the average worker spends about 2.5 hours per day – roughly 30% of their workday – just searching for information across sources like email and filing cabinets. The average cost to manually manage paper documents is about $20 in labor, according to a study by PwC. It’s estimated that each misfiled document costs a company $125, and each lost document costs $350 to $700.

Not only that, but according to McKinsey, government agencies spend a staggering $38.7 billion each year on paper-based processes. Despite ongoing digital efforts, more than 1,200 federal forms still require paper submissions and signatures, driving up costs, slowing down service delivery, and frustrating constituents. And when records are missing or inaccessible during audits, investigations, or FOIA responses, penalties and noncompliance risks can soar well beyond $100 per incident, depending on the state and severity of the breach.

Now multiply those costs across thousands – or even millions – of records, and the true price of inaction becomes clear. 

Digitization, on the other hand, delivers measurable returns: 

Reduce storage costs

Say goodbye to expensive off-site document storage space or maintaining on-site file rooms packed with paper. Digitizing records means freeing up valuable real estate and redirecting those dollars toward programs that matter. Whether it's converting entire archives or just incoming records, the savings on physical infrastructure add up fast.

Speed up document retrieval and routing

No more digging through cabinets or waiting on interoffice file transfers. With searchable, indexed digital files, staff can locate and share information in seconds, enabling them to streamline casework, accelerate reviews, and reduce bottlenecks across departments. That’s time saved, errors avoided, and productivity gained.

Faster case resolution and FOIA response 

Need to resolve a claim, respond to an audit, or fulfill a FOIA request? Digital access to documents ensures that staff can act quickly and confidently. Agencies can respond in a matter of hours, not days or weeks, improving both internal efficiency and public trust.

Improve public satisfaction 

Citizens expect the same transparent public services from government agencies that they get from the private sector. Digitization helps agencies meet those expectations by enabling faster, more transparent, and more responsive public service delivery, helping you build trust with the communities you serve.

Modern need for speed 

Instant access to documents and robust searchability aren’t a luxury, they’re the new normal. Constituents expect timely service, and staff need real-time access to act decisively. Digitization makes that possible by putting the right information at the right fingertips, exactly when it's needed.

Workforce reality

Many government agencies are operating with leaner teams and tighter budgets. Automating repetitive document-handling tasks helps staff stay focused on higher-impact work. Digital systems and automation lighten the load by handling repetitive tasks and making workflows more efficient.

Record retention challenges 

Juggling short-term files and long-term retention policies is a logistical headache with paper. Digital platforms simplify it all: set automated retention policies, organize by category, and enable audit-friendly oversight, ensuring compliance without the chaos.

Technology maturity 

Technologies like artificial intelligence (AI), machine learning (ML), optical character recognition (OCR), and Natural Language Processing (NLP) are no longer experimental, they're delivering real results. These advanced capabilities enable documents to be automatically read, categorized, indexed, and analyzed with speed and precision during the digitization process. The result? Less manual work, greater data accuracy, and new visibility into information and data that was once locked away in paper. What used to take hours or even days can now happen in seconds, unlocking smarter decisions and faster service. 

Ripcord’s Solutions for Government Digitization and Document Management

Ripcord’s digitization solution isn’t just a tech upgrade – it's a force multiplier and smart, long-term investment. Our solutions are built for agencies managing large-scale physical and digital records. We’ve combined AI-powered robotic digitization, document intelligence, and secure, cloud-based content management to help government agencies modernize their operations more efficiently and securely. 

Here’s how Ripcord helps:

Robotic Scanning and Document Digitization

Ripcord delivers digitization at a speed, scale, and quality that traditional record scanning simply can’t match. Whether it’s preserving historical archives or digitizing day-forward documents from daily operations, our end-to-end solution adapts to an agency’s unique needs. 

We use our patented, vision-guided robotics to carefully scan fragile, bound, and oddly sized records with unmatched care and precision. High-resolution imaging technology captures every detail – up to 8K in full color – ensuring crystal-clear digital records that are fully indexed, accurate, and ready for action. 

AI-Powered Document Intelligence

Ripcord goes beyond simple record scanning to turn documents into powerful data. Our advanced technology allows us to classify content from both structured and unstructured documents, extract critical data, and seamlessly scale to meet evolving needs. We can replicate your physical document structure down to the exact folder, box, and staple, and create a precise digital twin. That means your team spends less time searching for information and more time leveraging data to make informed decisions that move your operations forward.

Secure, Searchable Digital Access

Once digitized, records are indexed and made accessible through Ripcord’s cloud-based content management platform, Canopy, or through on-premise solutions, depending on the agency’s needs. All access is logged, auditable, and governed by permission controls to ensure security and compliance at every step.

Compliance-First Retention

Ripcord ensures digitization efforts align with agency-specific retention schedules, NARA compliance, state records laws, and industry best practices. From personnel files and permits to case files, contracts, or correspondence, we empower government agencies to manage federal records with confidence and compliance at every level.

Ripcord supports government agencies across the U.S. in taking control of their documents, no matter the format, condition, or location. From scanning and AI-powered data extraction to secure, cloud-based access, you’ll have the tools necessary to help your teams focus on what they do best: serving the public.

The Bottom Line

Digitizing federal records isn’t just about going paperless, it’s about unlocking faster access to information, strengthening compliance, and delivering more responsive public service. Delays, compliance risks, and rising operational costs are only getting worse the longer agencies wait to modernize.

Government agencies are drowning in paper, and the longer they wait to digitize, the harder it’ll be to catch up.

📥 Ready to take the first step? Contact Ripcord or take our self-paced assessment to evaluate your agency’s readiness for digital transformation.