Xerox Corporation plans to use its $3.5bn outsourcing business and rapidly growing solutions and professional services units to pursue an estimated $100bn market opportunity.
The company says these offerings, coupled with its focus on ‘non-paper-related’ opportunities such as web-based document solutions, consulting and network services will become a major source of revenue for Xerox as it evolves to meet customer demands.
Speaking at an industry consultant meeting in New York on Tuesday, Anne M. Mulcahy, Xerox president and chief operating officer, said that Xerox is “building a focused portfolio of solutions and people-based services to help customers work smarter.”
Mulcahy said Xerox will support its solutions and services expansion as part of a turnaround plan that includes $1bn in cost reductions and $2 to $4bn in asset sales and related cash generating initiatives. “Our investments are shifting as we take cost out of our business and redirect resources to high-growth areas like solutions, services and colour,” she said.
In Europe, Xerox is offering advanced consulting services through Xerox Industry Solutions and Services (XISS), which has doubled its revenue and grown from 150 people to about 800 people over the past two years. Xerox Connect, a 1400-employee consulting and integration business, will continue to deliver a range of professional services across North America on-site, off-site or virtually.
—Richard Byatt
Reprinted with permission; copyright 2001 i-FM
