Global technology giant Xerox Corporation — keen to shed the “copier company” tag — is spreading its footprint across a slew of businesses that include business process outsourcing, document management processes and IT outsourcing. The change in track for Xerox comes at a time when data usage is growing at a fast pace across the globe.
Xerox’s new businesses comprise services such as billing electronic toll collections to a driver’s credit card, payroll processing, travel and expense accounting, data centre, network and server support, among others. The company expects telecom, banking and insurance to be its key revenue driving sectors in India, along with manufacturing, public sector and retail.
“Things are okay for us and going well, but this is about change. The reason why we are going about business process outsourcing is not because we have a terrible technology business. Our technology business is doing very well and growing across the world. But we have a lot more capabilities that we can use and build upon,” Ursula M. Burns, chairman and CEO, Xerox Corporation told Hindustan Times.
As data grows exponentially, the veracity and usefulness of data usage declines, Burns said. “Our approach is to try and make this data overflow useful and applicable for business and the world.”
Globally, Xerox earns nearly 50 per cent of its revenues from services, up from just 23 per cent last year. In developing economies such as India, where hardware still accounts for a major chunk of its revenues, Xerox hopes services will account for 50 per cent of revenues by 2013.
Last year, Xerox acquired data major Affiliated Computer Services (ACS) for $6.4 billion and is scouting for more buys, Burns said. “The large ACS-kind of acquisition and medium-sized deals of around $1.5 billion will not happen in the near term. But deals in the range of $10 to $100 million are more likely.”
(Xerox paid for the writer’s travel and stay for this story)