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• Xerox Research Centre Europe (XRCE): Located in Grenoble, France, XRCE research aims to differentiate
Xerox business process service offerings by simplifying them and making them more automated, intelligent and
agile. The center combines its world-class expertise in imaging, text and data analytics, with insights from its
ethnographic studies to create and design innovative and disruptive technology.
• Xerox Research Center India (XRCI): Located in Bangalore, India, XRCI explores, develops, and incubates
innovative solutions and services for our global customers, with a special focus on emerging markets.
Investment in R&D is critical for competitiveness in our fast-paced markets. One of the ways that we maintain our
market leadership is through strategic coordination of our R&D with Fuji Xerox (an equity investment in which we
maintain a 25 percent ownership interest). We have aligned our R&D investment portfolio with our growth initiatives,
including enhancing customer value by building on our business process services leadership and accelerating our
color leadership.
Our total research, development and engineering expenses (RD&E) (including sustaining engineering expenses,
which are the hardware engineering and software development costs incurred after we launch a product) totaled
$601 million in 2013, $655 million in 2012 and $719 million in 2011. Fuji Xerox R&D expenses were $724 million in
2013, $860 million in 2012 and $880 million in 2011.
Segment Information
Our reportable segments are Services, Document Technology and Other. We present operating segment financial
information in Note 2 - Segment Reporting in the Consolidated Financial Statements, which we incorporate by
reference here. We have a broad and diverse base of customers by both geography and industry, ranging from
small and midsize businesses (SMBs) to graphic communications companies, governmental entities, educational
institutions and Fortune 1000 corporate accounts. None of our business segments depends upon a single
customer, or a few customers, the loss of which would have a material adverse effect on our business.
Revenues by Business Segment
Our Services segment is the largest segment within the Company, with $11,859 million in revenue in 2013,
representing 55 percent of total revenue. The Document Technology segment contributed $8,908 million in revenue,
representing 42 percent of total revenue. The Other segment contributed $668 million in revenue, representing 3
percent of total revenue.
Services Segment
We provide comprehensive services in global markets across all major industries and government agencies. These
services help our clients simplify the way work gets done, providing them more time and resources to allocate to
their core operations, enabling them to respond rapidly to changing technologies and reducing expenses associated
with their business processes and information technology support.
Our Services segment comprises three service offerings: Business Process Outsourcing (BPO), Information
Technology Outsourcing (ITO) and Document Outsourcing (DO).
Business Process Outsourcing
We are the largest worldwide diversified BPO company, with an expertise in transaction-intensive offerings tailored
for several industries. BPO represented 59 percent of our total Services segment revenue in 2013. Our BPO
services are delivered through three market-oriented operating sectors: Healthcare, Commercial and Government
and Transportation Services. Our services include:
Healthcare Services
The healthcare industry is experiencing a radical transformation. Xerox is uniquely positioned across all segments
of the industry to help our customers meet these challenges with innovative, scalable and flexible services tailored
to their needs. Examples include:
Xerox 2013 Annual Report 6