Xerox at Your Service

Xerox's host of office services are proving to be a strong new avenue of growth for the document management company.

Services will be a key to Xerox Corp.s future as it grows beyond its roots as a printer and copier company, according to its top executive.

In an interview here last week, Chairman and CEO Anne Mulcahy said that since Xerox initiated its push into the services arena three years ago with the launch of the Xerox Global Services unit, 25 to 30 percent of its business has been delivered through services, and she expects that number to grow to at least 50 percent within the next few years.

That doesnt mean the Stamford, Conn., company is moving away from its strengths in document management products, Mulcahy said. Instead, services will be another offering it can bring to customers to help manage their environments.

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"This is a big growth opportunity, but we need to be careful," said Mulcahy, who was here to meet with analysts. "Weve been scaling, but in a very measured way. ... We expect services to grow faster than our core technology business."

Xerox offers a host of office services to enterprises in such areas as assessment, procurement, document management and PLM (product lifecycle management). Last week, the company rolled out print services aimed at enterprises that produce large numbers of printed documents. Xerox Production Optimization Services offerings provide assessment tools and software designed to ferret out inefficiencies and maximize a companys use of its printing resources.

Xerox also is expanding its services to channel partners and this year began delivering its Lean Six Sigma tools, which are designed to help customers assess their infrastructure and find ways to make it more productive and efficient. Xerox had used those tools internally over the past three years, realizing $120 million in savings through that use last year. Mulcahy said she expects that number to double this year.

Xerox has begun beta testing such tools as Xerox Office Productivity Adviser for assessments and DocuShare for workflow services with channel partners to give them more to offer customers, Mulcahy said. The tools also give Xerox another way into the SMB (small and midsize) business space.

As use of color in printing expands, services will grow around that as well, Mulcahy said.

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