Who Is This Quarterly Update For? NelsonHall’s Quarterly Update on Xerox provides a snapshot ofdevelopments at the company in the last quarter. It accompaniesNelsonHall’s more comprehensive Key Vendor Assessment program.Both programs are designed for:
Marketing, sales and business managers developing strategies totarget service opportunities within the BPO/IT Services markets Sourcing managers monitoring the capabilities of existing suppliersof IT Outsourcing and Business Process Services and identifyingvendor suitability for these services Consultants advising clients on vendor selection-Vendor marketing, sales and business managers looking tobenchmark themselves against their peers Financial analysts and investors specializing in the BPO/IT servicessector.
Key Findings & Highlights While Xerox Services Q2 2016 revenues were down y/y, there wassignificant progress in marginsContract renewal rate was below the target range and bookings weredown y/y. Xerox Services has chosen not to renew severalunderperforming contracts, and there is more rigor in setting signingscriteria. There have also been some decisional delays related to theseparation.Xerox Services has implemented a recovery plan for its low margincustomer care BPO businessProgress on break up of Xerox Technology and Xerox ServicesXerox is preparing to split into two independent, publicly-tradedcompanies. The transaction is on track to be completed by end 2016.During Q2, Xerox announced:
The appointment of Ashok Vemuri as CEO of the new BPOcompany. Vemuri joined as CEO Xerox Business Services on July 1 The new BPO company will be named Conduent. The messagingbehind the name is intended to convey themes such as ‘conduit’,‘confluence’ and ‘constituent’ in providing services that help clientsconnect with their customers/employees.An initial Form 10 registration statement for Conduent was filed with theSEC on June 30.
Scope of the Report The report provides a quarterly update on Xerox, looking at financialperformance and key developments during the period.It accompanies NelsonHall’s Key Vendor Assessment program whichlooks at Xerox’s IT and BPO offerings, capabilities, and market andfinancial strengths, including:
Identification of the company’s strategy, emphases and newdevelopments Revenue breakdowns Analysis of the company’s offerings and key service components Analysis of the profile of the company’s client base including thecompany’s targeting strategy and examples of current contracts Analysis of the company’s strengths, weaknesses and outlook.