Is Xerox a #BPM Company?
- September 29, 2009
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Ok, no, Xerox isn’t a BPM company in the traditional sense – they’re not selling BPM software. But, I think Xerox has reached the conclusion that the process is their product. And once you realize that, how can you not argue in favor of the acquisition of ACS, which does a lot of BPO (business process outsourcing) leveraging Xerox equipment, software, and technology.
As Craig Le Clair of Forrester points out:
And speaking of capture, XGS would become the largest outsourced capture provider. Of all the ITO/BPO players, none did as much for that inbound channel as ACS. We estimate about 1B of ACS’s revenue could be classified as in-bound capture. But that’s just part of this story. A strong ITO channel like ACS will help push XGS’s already fast growing Managed Print Services business.
This is a classic BPO play on managed print services, and getting bigger scale makes it more likely to work. Back in the mid-90’s Xerox was a customer of my employer, and I worked on some very innovative projects for configuring extremely complex printing solutions (networked solutions) leveraging Docutech printers. Even then, it was clear that the world of printing was going to change one way, or the other (or both): either professional color printing would become dramatically less expensive (it did, or at least amateur color printing did), or professional printing would be increasingly outsourced. Why the latter? As fewer companies could justify spending the capital to own the expensive print equipment during tight times, or because of smaller printing demands (more and more documents going online and onto CD’s), it would make more sense to buy printing services “on demand.”
This looks like a giant step in the direction of consolidation of managed print services, and other BPO services such as inbound capture. I can’t speak to the pricing of the deal, but I feel like this is probably a very good business for Xerox to beef up.