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<table border="0" cellpadding="0" cellspacing="0" width="100%" class="forumline"> <tr> <td class="cat" width="22%">Autor</td> <td class="cat">Wiadomość</td> </tr> <tr> <td width="22%" align="left" valign="top" class="row1"><span class="name"><a name=""></a><b>k98c6jj1kh</b></span></td> <td class="row1" height="28" valign="top"><table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td width="100%"><img src="http://picsrv.fora.pl/Avalanche/images/icon_minipost.gif" width="12" height="9" alt="Post" title="Post" border="0" /><span class="postdetails">Wysłany: Śro 5:51, 16 Lut 2011<span class="gen"> </span> Temat postu: Xerox-ACS deal brings new opportunities</span></td> </tr> <tr> <td colspan="2"><hr /></td> </tr> <tr> <td colspan="2"><span class="postbody">When completed in the first quarter of 2010, Xerox&rsquo;s purchase of Affiliated Computer <br /> Services Inc. will be the largest acquisition by the company best known for making <br /> copiers. It will create a $22 billion global enterprise for document technology and <br /> business process management solutions. <br /> <br />“This is an exciting opportunity for us,” said Joseph Doherty, executive vice president <br /> and group president of ACS Government Solutions, a unit of ACS. “It&rsquo;s a win-win for <br /> both companies, absolutely.” <br /> <br />The merger also is expected to nearly triple Xerox&rsquo;s services revenue to $10 billion <br /> next year from $3.5 billion in 2008, said Xerox Chief Executive Officer Ursula Burns <br /> during a Sept. 28 conference call announcing the deal. <br /> <br />The acquisition “is a game-changing initiative for sure,” she said. <br /> <br />Xerox will pay $6.4 billion in cash and stock at $63.11 per share for the Dallas-based <br /> diversified business process outsourcing (BPO) firm. <br /> <br />ACS,<a href="http://www.orbto.com/software-outsourcing/flash-web-development/" target="_blank" class="postlink">Flash development outsourcing</a>, which will be known as ACS,<a href="http://www.orbto.com/software-outsourcing/php-outsourcing/" target="_blank" class="postlink">PHP development outsourcing</a>, a Xerox company, will become the corporation&rsquo;s <br /> core BPO provider with CEO Lynn Blodgett remaining at the helm. <br /> <br />“ACS brings a strong government presence to the table, plus expertise in systems <br /> integration and especially business process optimization,<a href="http://www.orbto.com/business-process-outsourcing/data-entry-outsourcing/" target="_blank" class="postlink">Data processing outsourcing</a>,” Shawn McCarthy, director <br /> of government vendor programs at IDC Government Insights, wrote in his blog. <br /> <br />“Meanwhile, Xerox brings an established federal government sales and marketing <br /> group, and it&rsquo;s well positioned to enhance ACS&rsquo; BPO expertise by enhancing the way <br /> its integrated systems capture documents, information and an organization&rsquo;s internal <br /> data,” he wrote. <br /> <br />McCarthy said he expects that in 2010,<a href="http://www.orbto.com/software-outsourcing/flex-development/" target="_blank" class="postlink">Flex outsourcing</a>, Xerox will focus on organic growth, new <br /> government business, new government market alliance partnerships and channel <br /> agreements for its managed print services. <br /> <br />Xerox historically has had a limited footprint in the federal BPO market, said Rishi <br /> Sood, vice president at Gartner Research. “There has been some print-on-demand, <br /> managed print services work that Xerox has done in the government space overall, but <br /> clearly this [merger] is about to take it much higher and much more deeper with <br /> government customers.” <br /> <br />ACS was mostly out of the federal market for five years because of a noncompete <br /> agreement the company signed when it sold most of its federal business to Lockheed <br /> Martin Corp. for approximately $658 million. In exchange, ACS received Lockheed <br /> Martin&rsquo;s commercial and state and local information technology business. <br /> The noncompete agreement with Lockheed ended in November 2008, and ACS is <br /> again hiring sales and other employees to boost its footprint in the federal sector, <br /> Doherty said. <br /> <br />He added that he foresees no potential conflicts between Xerox and ACS because the <br /> merger will create a single provider, which would reduce costs to the federal <br /> customer, improve processes and more efficiently manage the total information <br /> workflow. <br /> <br />“Our understanding is that the larger federal agencies have a general manager at <br /> Xerox, so they understand the mission and capabilities and expectations for that <br /> particular agency,” Doherty said. <br /> <br />“I would expect us to partner with them,” he said. “They would help us understand the <br /> agency, understand what they are doing today, and then jointly, we would have <br /> conversations with the customer as to how we could extend the value proposition.” <br /> The merger also could benefit ACS by providing the company with potential new <br /> sales outlets. <br /> <br />“It broadens our reach through a global mechanism,” Doherty said, pointing out that <br /> Xerox “is in a significant number of countries where we are not. And again, they have <br /> a customer set that is different than ours in a lot of cases. So I just think there&rsquo;s a good <br /> value proposition all the way around both in the technology enhancements, in the sales <br /> capability and in the footprint.” <br /> <br />One of ACS&rsquo; core competencies is health care solutions. About 40 percent of the <br /> company&rsquo;s revenue comes from federal, state and local government clients, especially <br /> Medicaid claims processing, Blodgett said during the conference call. <br /> <br />Xerox technologies will help ACS handle the millions of pages of unstructured health <br /> care documents, data and images, he said, which will lead to better analyses and more <br /> outcome-based health care solutions. <br /> <br />“When you think of those hot, long-term growth opportunities like the government <br /> health care marketplace, that&rsquo;s clearly an area that needs a greater degree of <br /> technology penetration," Sood said. "That&rsquo;s clearly an area where greater focus on <br /> document management, information workflow, information dissemination solutions <br /> are important." <br /> <br />“I think what you&rsquo;re building in a Xerox/ACS organization is the ability to be able to <br /> provide services and solutions that not only target those types of opportunities from a <br /> hardware perspective but also from a professional services perspective,” he said. <br /> Indeed, Burns said ACS&rsquo; strength in the health care sector helped Xerox decide to <br /> acquire the company. “But this clearly was not the only reason — or even the primary <br /> reason — why we went after ACS,” she said, citing ACS&rsquo; strong management team, <br /> good growth rate, financial acumen and ability to extend Xerox&rsquo;s offerings globally as <br /> the main motivators for the deal. <br /> <br />Doherty said he believes the weak economy also has been an impetus for the recent <br /> spate of similar mergers: Dell Inc. bought Perot Systems Corp., Hewlett-Packard <br /> Corp. bought EDS Corp., and Cisco Systems Inc. bought Tandberg. <br /> <br />“Companies are saying, &lsquo;How are we going to get ourselves set and ready and make <br /> the investment now for the long term?&rsquo; and I think that is what HP saw, what Dell <br /> saw, and that absolutely is what Xerox sees,” he said. <br /> <br />Nevertheless, Sood cautioned that “it&rsquo;s always a tough cultural issue to merge <br /> organizations as disparate as Xerox and ACS.” Xerox,<a href="http://www.orbto.com/business-process-outsourcing/data-processing-companies/" target="_blank" class="postlink">Data Entry outsourcing</a>, based in Norwalk, Conn., is <br /> reflective of the liberal East Coast, while ACS has its headquarters in more <br /> conservative Texas. <br /> <br />Both organizations face another big challenge because it is difficult to reorient a <br /> traditional hardware organization to sell services and solutions, he said. <br /> “Xerox and ACS need to assure competitors that this is going to be a merger that <br /> provides advantages to all types of relationships in the marketplace,” he said.</span></td> </tr> </table></td> </tr> <tr> <td colspan="2" height="1" class="spaceRow"><img src="http://picsrv.fora.pl/Avalanche/images/spacer.gif" alt="" width="1" height="1" /></td> </tr> </table>
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