Xerox 2013 Annual Report Download - page 18

PART I
ITEM 1. BUSINESS
Xerox is the world's leading enterprise for business process and document management solutions. We provide
services, technology and expertise to enable our customers - from small businesses to large global enterprises - to
focus on their core business and operate more effectively.
2013 marked the 75th anniversary of the first xerographic image, which was created by Chester Carlson to simplify
the process of copying information. His invention would eventually lead to the formation of Xerox Corporation and
the birth of an industry. Even today, this xerographic process remains at the heart of most office printers and copiers
around the world.
Xerox has changed greatly in size and scope since the invention of the copier. However, the company’s basic
principles have remained the same. From printers and multifunction devices, to business services and solutions for
transportation, education and healthcare our engineers, scientists and researchers continue to invent ways that
make work, and life, a little simpler.
We are a leader across large, diverse and growing markets estimated at over $600 billion. The global business
process outsourcing and information technology outsourcing markets are estimated to be in excess of $250
billion each. These markets are very broad, encompassing horizontal business processes as well as industry-
specific processes. The document management market is estimated at roughly $100 billion. This market is
comprised of the document systems, software, solutions and services that our customers have relied on for years to
help run their businesses and reduce their costs. Xerox led the establishment of the managed print services market,
and continues as the industry leader today.
Market estimates are derived from third-party forecasts produced by firms such as Gartner and NelsonHall, and from our internal assumptions.
The following are some additional insights into these business areas:
Business Process Outsourcing (BPO): We are the largest worldwide diversified business process outsourcing
company, with an expertise in managing transaction-intensive processes. This includes services that support all
enterprises through offerings such as customer care, finance and accounting, and human resources, as well as
vertically focused offerings in areas such as healthcare, transportation, retail and telecommunications.
Information Technology Outsourcing (ITO): Our specialty is the design, development, and delivery of flexible IT
solutions, mapped to each client's needs and standards. Our secure data centers, help desks and managed storage
facilities around the world provide a reliable IT infrastructure.
Document Technology and Document Outsourcing (DO): Our document technology products and solutions
support the work processes of our customers, and provide them with an efficient, cost effective printing and
communications infrastructure. Our managed print services offering helps customers optimize the use of document
systems across small businesses or large global enterprises.
Our Strategy and Business Model
Our strategy is to create sustained shareholder value through growth in business services and continued leadership
in document technology. We will also create value through expanding margins and profits as well as a balanced
capital allocation strategy that returns cash to shareholders, while investing for growth and competitive advantage.
To accomplish this, we have established the following strategic priorities:
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