Xerox 2010 Annual Report Download - page 5

3Xerox 2010 Annual Report
• TheStateofWisconsinsignedaneight-year,$30million
contract to have Xerox continue handling the State’s child-
support payment processing operations – including processing
and disbursing payments, performing bank reconciliation and
managing a customer service call center. All 50 states have
contracts with us for a variety of business processing and other
services that include child support, food stamps, Medicaid,
disability, health and welfare.
• FiatGroupsignedave-yearcontractforXeroxtomanageits
print infrastructure company-wide. Expected results include a 30
percent reduction in print-related cost and a 50 percent reduction
in energy use. Fiat joins other Xerox customers for managed print
services like the Dow Chemical Company, Ingersoll Rand and
hundreds more.
• TransitridersinDenverwillnoticeafaster,moreefcientand
greener experience as the City implements an advanced fare
collection system managed by Xerox. As part of a four-year, $15
million contract, public transportation users will receive smart
cards, load them with a pre-paid amount and simply wave the
smart card in front of a scanner to gain access to the transit
system. We do this and similar applications – like E-ZPass™ – for
scores of municipalities.
• Morethan20,000Procter&Gambleemployeeswillsoonbeable
to print e-mails, presentations and other business documents
directly from their smart phones. It’s all part of a much broader
EnterprisePrintServicesstrategymanagedbyXeroxforP&G
around the world. It’s credited with driving cost down and
productivity up while helping the company meet its aggressive
sustainability goals.
• AspenMarketing,thelargestprivatelyheldmarketingservices
company in the United States, uses our digital technology –
includingXeroxiGen4® presses, DocuTech® Highlight Color
Systems, Xerox FreeFlow® Web Services and XMPie® PersonalEffect
Cross-Media solution – to help auto dealerships increase floor
trafcandgrowrevenuefrommaintenanceservices.They’re
promoting client loyalty through personalized direct-marketing
materials such as postcards, letters and invitations.
• TheScottsMiracle-GroCompany,theindustry-leadinglawnand
garden care company, turned to Xerox for help on upgrading
its IT infrastructure across Europe. The 10-country overhaul was
accomplished in four months while reducing costs, improving
performance and embedding better innovation.
• TomaximizeROIonits401(k)plan,aglobaldefenseand
technology giant asked Xerox to design and implement a
communication campaign to educate employees about the
importance of saving for retirement. The results: increased
employee participation rates, increased contribution rates and
improved asset allocation.
• And,ofcourse,we’reusingACSourselvestorunsomeofour
ownback-ofceoperationssuchasHRbenetsprocessingand
accounts payable.
Multiply those examples by thousands more and you begin to
see the scope and scale of our company – and the extraordinary
opportunities for growth.
Growth Opportunities
With the building of our services business alongside our technology
business, the size of the market we address has grown exponentially.
Our traditional technology-driven market is valued at about
$130 billion and is relatively flat. But we now participate in two
additional markets:
• BusinessProcessOutsourcing,whichiscurrentlyvaluedatover
$150 billion and is growing at over 5 percent per year.
• InformationTechnologyOutsourcing,whichiscurrentlyvaluedat
$250 billion a year and is growing at over 3 percent per year.
In total, that’s a more than $500 billion market – more than three
times our traditional opportunity. We’re attacking it aggressively on
four fronts.
First, we’re accelerating the transition to color. Until recently,
thebarrierto“coloreverywhere”hasbeencost.Thatbarrierwas
brokenrstinthehomewiththeadventofaffordablecolorink-jet
printers.Nowwe’rebreakingthecostbarrierinofceandproduction
environments with our advantaged solid ink technology. For some
applications, a color page is already priced the same as a black-and-
white one.
We have our eyes wide open to the trends in the marketplace
around a declining use of paper for transactional black-and-white
documents. A good example is all those bill statements that used to
be mailed hardcopy every month and are now distributed by e-mail.
Ifyoulookedaroundmostofcesthesedays,you’dbeconvinced
that paper is never really going away. That may be true, but the way
we use paper is changing and our dependency on it is declining.
The higher-value print communications are those produced in color –
photo books, marketing collaterals, direct mailers and packaging. And
those printed in color with messages customized for the individual
cut through clutter in ways that no electronic communication ever
can. That’s why our investments in printing are focused entirely on
breaking the cost barriers in color and advancing digital technology
for the creation of real-time, relevant, personalized communications.