Xerox 2015 Annual Report Download - page 18

PART I
ITEM 1. BUSINESS
Planned Company Separation
On January 29, 2016, we announced that our Board of Directors approved management’s plan to separate the
Company's Business Process Outsourcing business from its Document Technology and Document Outsourcing
business. Each of the businesses will operate as an independent, publicly-traded company. Leadership and names
of the two companies will be determined as the process progresses. The transaction is intended to be tax-free for
Xerox shareholders for federal income tax purposes. In conjunction with the separation, we also announced a three-
year strategic transformation program targeting savings across all segments.
Xerox will begin the process to separate while we finalize the transaction structure. Our objective is to complete the
separation by year-end 2016, subject to customary regulatory approvals, the effectiveness of a Form 10 filing with
the U.S. Securities and Exchange Commission, tax considerations, securing any necessary financing, and final
approval of the Xerox Board of Directors. Until the separation is complete, we will continue to operate and report as
a single company, and it will continue to be business as usual for our customers and employees. Accordingly, the
overview of our business provided here is based on our 2015 reporting basis.
Our Business
Xerox is helping change the way the world works. By applying our expertise in imaging, business process, analytics,
automation and user-centric insights, we engineer the flow of work to provide greater productivity, efficiency and
personalization.
We are a leader across large, diverse and growing markets estimated at nearly $365 billion(1). 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 $275 billion(1). The document
management market is estimated at roughly $90 billion(1) 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.
(1) Market estimates are derived from third-party forecasts produced by firms such as Gartner and Nelson Hall, and include our internal
assumptions.
The following are some additional insights into these business areas:
Business Process Outsourcing (BPO): We are a leading enterprise for business process outsourcing, with
expertise in managing transaction-intensive processes. Our BPO business 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 (DT) 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 printing and their related document workflow and business processes.
Our Strategy and Business Model
Our strategy is to apply technology and innovation to help change the way the world works, 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, (beginning in 2014)
we established the following strategic priorities:
1