Xerox 2009 Annual Report Download - page 7

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5Xerox 2009 Annual Report
That’s a big deal for us. Think about it. BPO is all about taking
time-consuming operations and either automating them and/or
finding more productive ways to do them manually.
Healthcare is a good example. If you’ve been to a doctor
or hospital recently, you know that the industry is still paper-
dependent. In many cases, BPO providers are working behind
the scenes keeping the paper flowing and getting it where
it needs to be – producing hard copies, converting paper to
digital, distributing forms, processing payments and so on.
The same is true in many other facets of our daily lives –
mortgage applications, credit card processing, benefits
forms, insurance claims, and on and on. We know how to
apply document software, such as advancements in redaction
and categorization, to make these processes more efficient
and effective.
That’s why BPO became the logical and natural next step for
Xerox. With a BPO business, we extend our global participation
in vertical markets – like healthcare, transportation and financial
services. And, we participate in a more diversified and faster-
growing market that holds up well in any economy. Nowhere
was this strategy more visible than in our acquisition of Affiliated
Computer Services (ACS).
Completed in February of 2010, Xerox’s acquisition of ACS
significantly strengthens our financial position and enables
us to take a quantum leap forward in expanding our already
growing services business. It puts an emphatic exclamation
point on our drive to transform our company. Growth is certainly
at the center of this transformation.
While perhaps not a familiar name in the marketplace, ACS
touches millions of lives everyday. Consider this: ACS, which
is now a Xerox company:
•
Provides services to more than 1,700 federal, state, county
and local governments, making ACS the largest provider of
managed services to government entities in the United States.
•
Processes about $3 billion in electronic toll collections
every year.
•
Handles more than 1.5 million phone calls daily in 150
customer care centers.
•
Manages more than 12.5 million student loans worth
$170 billion.
•
Provides HR services for more than 4.4 million employees
and retirees annually.
Net Cash from
Operating Activities
(millions)
Gross Margins
(percent)
41.2 40.6 40.3 38.9 39.7
Selling, Administrative
and General Costs
(percent of revenue)
26.2 25.2 25.0 25.7
1,420
1,617
1,871
1,554*
2,208
’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09 ’05 ’06 ’07 ’08 ’09
27.3
939*