Xerox 2015 Annual Report Download - page 22

2015, $577 million in 2014 and $603 million in 2013. Fuji Xerox R&D expenses were $569 million in 2015, $654
million in 2014 and $724 million in 2013.
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, with $10,137 million in revenue in 2015, representing 56 percent of
total revenue. The Document Technology segment contributed $7,365 million in revenue, representing 41 percent of
total revenue. The Other segment contributed $543 million in revenue, representing 3 percent of total revenue.
Services Segment
We provide business services in global markets across major industries and to government agencies. These
services help our clients improve the flow of work, providing them more time and resources to allocate to their core
operations and enabling them to respond rapidly to changing technologies and to reduce expenses associated with
their business processes. Our Services segment currently comprises two types of service offerings: Business
Process Outsourcing and Document Outsourcing.
Business Process Outsourcing
BPO represented 68 percent of our total Services segment revenue in 2015. We are a leading enterprise for
business process outsourcing, with expertise in managing transaction-intensive processes. We provide 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. We bring our BPO solutions to market through Industry Business Groups and we deliver our
solutions to our customers through Global Capability Organizations.
Industry Business Groups
To enable deep client engagement and to optimize cross-selling of our broad portfolio of services solutions, we have
organized our go-to-market resources into global industry business groups. The industry groups have primary
responsibility for client relationships and sales, developing industry thought leadership and industry specific
solutions, and ensuring service delivery meets client requirements. The industry business groups in 2015 were as
follows:
• Commercial Healthcare: We have innovative solutions and subject matter expertise across the healthcare
ecosystem including providers, payers, employers and government agencies. We help these customers focus
on delivering better, more accessible and more affordable healthcare, which leads to better health and wellness
for their constituencies. In the commercial segment of the market, we primarily serve the following
constituencies:
Healthcare Payer and Pharma: We deliver administrative efficiencies to our healthcare payer and
pharmaceutical clients through scalable and flexible transactional business solutions, which encompass our
global delivery model and domestic payer service centers. We support nearly all of the top 20 U.S. commercial
health plans, touching nearly two-thirds of the insured population in the U.S.
Healthcare Provider Solutions: We serve hospitals, doctors and other care providers, including every large
health system in the U.S., with contracts in 49 of the 50 states. Our services help our clients improve access to
patient data, achieve tighter regulatory compliance, realize greater operational efficiencies, reduce
administrative costs and provide better health outcomes.
• Commercial Industries - High Tech and Communications, Financial Services, and Industrial, Retail and
Hospitality: We have deep expertise, targeted business process solutions, and a large, diverse client base in a
broad range of commercial industries including communications and media, high tech and software, banking
and capital markets, insurance, manufacturing, automotive, travel and leisure, food and beverage,
transportation and logistics and others.
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