Xerox: Ready for Real Business
Business Situation & Challenge
For nearly 60 years the name Xerox has been synonymous with copying and printing. Over the course of this time Xerox became the clear leader in printing and documenting services, expanded into other areas of business while delivering profitable growth. Given Xerox's strong presence in the printing and documenting sector, the company wanted to further expand into the growing market of business process outsourcing. This trend in expansion was already underway by their key competitor HP, with their acquisition of EDS.
Recognizing the need for diversification, in 2009 Xerox acquired Affiliated Computer Systems (ACS), the world's largest business process outsourcing firm for $6.4billion. In the words of Xerox CEO Ursula Burns, ""By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider, a game-changer for Xerox, acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth." This acquisition transformed Xerox into a $22 billion global company, of which $17 billion is recurring revenue.