xerox investor conference 2011 - services...

Lynn BlodgettPresident and CEO, ACS, A Xerox Company

Services Led

Xerox + ACS: A successful first year

• Global presence of Xerox

• Power of the Xerox brand

• Access to Xerox technology and innovation

• Resources of a major player in business process and IT outsourcing

• Benchmark operational excellence

• A powerful accelerator to our services-led strategy

+

• Accelerating revenue growth

• Significant synergy signings

• Over $5 billion synergy pipeline

• $100 million+ cost synergies

• Continued increase in Services margin

• World’s leading enterprise for business process and document management

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Xerox + ACS = $10B Services business

*Source: Internal Market Size Analysis

Document Outsourcing

Business Processes

Information Technology

Services market addressable opportunity*

2010 market size: $225 billion

2010-2014 CAGR: 7%


2010-2014 CAGR: 6%


2010-2014 CAGR: 4%

BPO/ITO revenue grew 7% CAGR over last five years

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Uniquely positioned in the Services market

Key Xerox differentiators

• Diverse Services offerings• Global capabilities and opportunities• Large and diverse customer base• Innovation

Business Process Outsourcing

DocumentOutsourcing

Information Technology Outsourcing

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Diverse Services offerings across horizontals and verticals

INFORMATION TECHNOLOGY

HR SERVICES

FINANCE & ACCOUNTING

CUSTOMER CARE

PAYMENT SERVICES

DOCUMENT MANAGEMENT

HEA

LTH

CARE

TRAN

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RTAT

ION

FIN

ANCI

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ERV

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• F&A: A/P, A/R, close process, procurement, cash mgmt., expense reimbursement

• Education: student loan servicing, student financial aid, enrollment mgmt.

• Financial Services: data processing services to auto finance & leasing

Commercial IT (~10%)

Gov Solutions (~12%)

Diversified Services offerings…

• Data center outsourcing

• Network management services

• Desktop management

• Help desk

• Remote infrastructure management

• Application services

HR Services (~8%)

• Consulting: retirement, health, comp

• Outsourcing: Employee service center, data management, payroll

• Benefits Outsourcing: 401(k), pension, health self-service portal

• Learning: technology services, content development, administration

• State: Child support payment processing, tax and revenue systems, eligibility determination & case mgmt, electronic benefits transfer, unclaimed property services, IT services

• Local: IT services, government records mgmt, public safety and justice systems

• Federal: Student loan servicing, healthcare claims processing, electronic payment cards, admin services, customer care

• Electronic toll collection

• Fare payment & collection

• Commercial carrier solutions

• Automated motor carrier tax & regulatory processing

• Public safety photo enforcement

• Traffic & parking management

• DMV customer care

…focused management

Financial Services(~6%)

Healthcare Payer(~6%)

Gov Healthcare(~6%)

Customer Care(~6%)

Healthcare Provider(~4%)

• Healthcare payer claim processing, billing, payment, reconciliation,

• Healthcare payer customer care, Web-based self service

• Cost recovery, audit, cost avoidance

• Mortgage: imaging, processing, administration

• Financial: credit card applications & customer care, lease administration

• Medicaid administrative & fiscal agent solutions

• Pharmacy benefits management services

• Children’s health administration

• Electronic health records

• Wireless customer care: customer acquisitions, device support, loyalty plans & collections

• Retail: supply chain efficiency, inventory management, data collection

• Travel: back office processing, customer care, on-line check-in support

• Consulting solutions

• Revenue cycle management

• Analytical care management & workflow solutions

Document Outsourcing (~34%)

Managed Print Services (27%)• Consolidating in-house

production and commercial printing under single point of control

• Designing, authoring and translating technical and user information

Communication & Marketing Services (7%)

• Creating personalized, multi-channel marketing communications















Transportation Solutions(~8%)

Above percentages represent percent of total Services revenue

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Services business mix

• Diversity of portfolio protects against cyclicality in the economy and within verticals• Each business has unique business dynamics• Leveraged platforms drive higher margins

Revenue Growth

Ope

rati

ng P

rofit

%

Managed PrintServices

Commercial IT

Communicationand Marketing

Services

GovernmentSolutions

Transportation Solutions

HealthcareProvider

FinancialServices

HealthcarePayer

GovernmentHealthcareSolutions

Customer Care

HumanResourceServices

Note: The graphic above is a relative representation of the Services lines of business in 2011 7

Global presence yields global opportunity

OurBrand

GlobalPresence

90%of current BPO/ITO businessPriority markets for initial expansionAdditional expansion opportunities

• 90% of current BPO/ITO business is based in the U.S.

• Global presence of Xerox provides substantial growth opportunity

• Xerox brand is valued at approx. $6.1 billion

• Ranked in the top 100 global brands $3 billion opportunity within Western Europe alone

assuming U.S. market share penetration

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A powerful sales engine

Cross-training and cross-sell incentives in place across all

geographies

Over 1,000 resources

dedicated to selling services

Power of the Xerox global account management

model

Existing ACS and Xerox client

base

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Services operational excellence

Leveraging consistent business practices and core competencies across all lines of business

• Strategic Business Unit focus

• Achievement-based compensation

• Process engineering skills

• World-class technology

• Global production model

• Proprietary workflow software

Core Competencies

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Cloud services framework

ACS

Man

agem

ent P

latf

orm

-AM

PIa

as/S

aaS

Cisco

GoogleNovellvBlockEMC

AmazonFlexpodNetAppVMWare

ITO Services• Data replication/CAS• Virtual PCs• Virtual servers• Services aggregated IaaS• Virtual storage

• LAN/WAN connectivity

Business Services• Cloud print• Healthy Town EMR• Service Aggregated SaaS• Collaborative Process Mapping• Accounts Payable• Insurance Claims

Core

AM

P Configuration management database

IT service management transaction engine

Services MarketplacePrivate CloudPublic Cloud

BusinessProcesses

We make the cloud accessible, easy and secure for enterprises of any size

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• Novel sensing devices to enable applications such as speed detection, surveillance, license plate recognition, occupancy detection

• Innovative imaging and sensor based analytics that provide state of the art information for transportation applications

• Integrated systems of sensing devices that communicate with transportation infrastructure to support an intelligent transportation system

Innovation: Intelligent sensingTo enable the next generation of transportation systems management, sensing devices will be connected and intelligent

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Innovation: Simple business process automationM

FD In

tegr

atio

n Co

mpo

nent

s

“MFD Kiosks” within client offices

Intelligent, customized interface for users’ specific security level for secure transactions.

Client customized application buttons

Easy to create, secure, role-based user profiles

1

2

3

Buttons work like “iPhone apps.” Each app brings a different set of services to the user.

MFD provides portal/ gateway to the services already provided by Xerox.

MFDs work through ITO infrastructure to connect to Xerox Services.

4 Pre-integrated Infrastructure

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Loyalty Programs

Recruiting

Billing

Order Process

Payroll Adjustment

Health Claim

Insurance ApplicationStudent Loan

Services: Primed for growth

Strong execution in a growing market • 7% CAGR for BPO/ITO revenue past five years and large market

opportunity

• Document Outsourcing new business signings up 19% in 2010

Xerox Differentiation • Diverse services offerings that are unmatched by competition

• Strong Global capabilities and significant global opportunities

• Large and diverse customer base that we can grow within

• World-class innovation

• Ability to acquire as a core competency to expand our offerings

• Strong partnerships that can be leveraged and built upon

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xerox investor conference 2011 - services...

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