Executive Profile: Xerox BPO Services

Xerox made a significant foray into the services sector with the $6.4 billion acquisition of ACS in 2010. Xerox has now completely absorbed the company as well as the branding, with the brand name Xerox henceforth (with the exception of Asia/Pacific). Xerox reorganized into two major divisions: Xerox Technology and Xerox Services, which encompasses ACS and other services. The merger symbolizes a unique combination of document management and print services, technology, customer service, finance and accounting, procurement, sourcing, and HR services, to create one of the largest “pure-play” BPO providers globally. 
 

ACS was one of the original “darlings of BPO” in the late 1990s and 2000s, with a unique client-centric approach, strong transition methodology and willingness to take on large, complex client contracts. However, the firm struggled competitively with the influx of low-priced Indian competition (2005-2008), and the Xerox merger came at an optimum time to stabilize the firm with significant investment in resources and new leadership to put the business back on the right track.
 

In 2011, Xerox had one of its most successful years for new local business and renewals in recent history. The company’s strength in managed print services has helped the legacy ACS BPO and IT services become more recognizable as a platform and has set the stage for entering emerging markets, such as cloud and mobility. 
 

HfS believes Xerox is uniquely positioned to take advantage of the company’s strong domestic presence, due to Xerox’s Western brand and established offerings in the public and healthcare sectors, such as the State of Texas and the Medicaid program. Xerox is also leveraging its combined capabilities in the insurance and consumer goods sectors. The company has a widespread presence across the globe, which Xerox can leverage to build a strong global services model. Xerox needs to enhance its offshore presence to keep up with competitors that have significant offshore presence.