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By Michael R. Zimmerman  |  Posted 2003-05-05 Print this article Print

MULCAHY: Well, certainly, security is very hot…theres also a lot of consulting services that are really helping make document processes in the office more productive. We talked about Office Document Assessments, but theres all sorts of solutions both onsite and offsite that can be delivered for customers that dont necessarily want to have paper documents. They might want to host applications offsite where Xerox can manage the content and really do the client communications. And were doing more and more of that in terms of imaging services. The nature and breadth of the overall services portfolio is really broadening and should be an area of good growth for us in the future. eWEEK: As far as your stated goal of getting services revenue to account for half the companys revenues, how far away are you from reaching that?
MULCAHY: Were still a ways away. Id say when we look at what we deliver through services or in stand alone consulting services were still at about 30 percent mark. So weve got a ways to go to get to the 50 percent mark. And I dont know that thats a fixed goal. It may be more, it may be less. But I think we know that we have the capability to grow services at a faster rate than we have to grow technologies.
eWEEK: Where was it a year ago? MULCAHY: It was probably 27 percent. But I think part of it is that the economy has hit the services sector fairly hard. So I think the last year and a half has been a real issue particularly with consulting services contracts. I think that will come back when the economy comes back a bit as well. So its definitely slowed down in the last year and a half. eWEEK: How do you see the role of services within Xerox, when alls said and done about products? MULCAHY: I do think it is the lead for our customer engagement. We need to be engaging with our customers on the basis of solving problems that should be some combination of the expertise we deliver with our people. The technology and the actual services we can provide to support the solution—thats when were at our best in solving customer problems. I think it is the approach we should be leading with. You know, technology is a part of that solution, but its just not what you lead with.


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