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Xerox maps business service strategy

May 11, 2011 12:00 AM

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Xerox Corp. outlined its strategy for growth at its annual investor conference, May 10. Business services and document management are its key growth opportunities that are expected to deliver long-term value for shareholders.

“This is the new Xerox,” says Ursula Burns, chairman and CEO. “Throughout enterprises of any size and in any industry, we are providing the back office support that results in reduced costs, more productivity, and efficient, simplified ways of getting work done.”

James A. Firestone, Xerox’s president of corporate operations, notes that while black-and-white and low value pages are declining across all market segments, growth in color and high-value “pages of persuasion” more than compensates for the overall decline, in terms of price per page. “In the office space, the desktop and the workgroup device are coming together. Once managed apart from eachother, leading to a proliferation of devices, this is fueling our document outsourcing business.”

The company’s financial plan is to shift its revenue mix to a higher percentage of services, a business that is targeted to grow between 6% and 8% by 2012. More than 90% of its revenue from services is annuity-based, providing a long-term revenue stream. The company also plans to expand distribution in its document technology business to capture more opportunity in developing markets and increase its business with small and midsize companies.  Color pages currently account for 25% of the total number of pages printed on Xerox systems, and color pages are reportedly growing 9% per year. Acquisitions are expected to give Xerox greater scale in global markets.  In 2012, Xerox expects to grow revenue by 4% to 6%.