Xerox 2014 Annual Report Download - page 16

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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.
We are a leader across large, diverse and growing markets estimated at nearly $650 billion. The global business
process outsourcing market is very broad, encompassing multi-industry business processes as well as industry-
specific business processes, and our addressable market is estimated at almost $300 billion. The document
management market is estimated at roughly $100 billion and is comprised of the document systems, software,
solutions and services that our customers have relied upon for years to help run their businesses and reduce their
costs. Xerox led the establishment of the managed print services market, and continues today as the industry
leader in this expanding market segment. The global information technology outsourcing market segments
where we participate are estimated to be roughly $250 billion in aggregate.
Market estimates are derived from third-party forecasts produced by firms such as Gartner and Nelson Hall, and from our internal assumptions.
The following are some additional insights into these business areas:
Business Process Outsourcing (BPO): We are the largest diversified business process outsourcing company
worldwide, with an expertise in managing transaction-intensive processes. This includes services that support
enterprises through multi-industry offerings such as customer care, transaction processing, finance and accounting,
and human resources, as well as industry-focused offerings in areas such as healthcare, transportation, financial
services, retail and telecommunications.
Document Technology and Document Outsourcing (DO): Our document technology products and solutions
support the work processes of our customers by providing them with an efficient, cost effective printing and
communications infrastructure. Our DO service offerings help customers ranging from small businesses to global
enterprises optimize their use of document systems and also their related document workflow and business
processes.
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 to our clients.
On December 18, 2014, we announced an agreement to sell our ITO business to Atos SE (Atos). Atos is a leading
international IT services company. The transaction is subject to customary closing conditions and regulatory
approval and is expected to close in the first half of 2015. As a result of this pending transaction and having met
applicable accounting requirements, we reported the ITO business as held for sale and a discontinued operation at
December 31, 2014 and reclassified its results from the Services segment to Discontinued Operations.
Subsequent to the closing of this transaction, Xerox will no longer directly market stand-alone IT services. Atos will
provide IT services to our current BPO customers and will support much of Xerox's internal IT requirements. They
will also be part of a broad network of IT providers with whom we can partner to provide world-class IT services as
part of our future BPO offerings. This transaction is part of our ongoing portfolio management strategy and enables
Xerox to increase our focus on our leading BPO and DO solutions where we can deliver the most value and
expertise to our clients.
Our Strategy and Business Model
Our strategy is to apply technology and innovation to transform the way people work and live, and to create
sustained shareholder value through growth in business services and continued leadership in document technology.
We 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:
1