Our reportable segments are Services, 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 very 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.
The cost and complexities of smoothly and securely running back-office operations can be a distraction from focusing on core business. That’s why enterprises turn to partners who specialize in
key business processes.
Our Services segment comprises three service offerings: Business Process Outsourcing (“BPO”), Information Technology Outsourcing (“ITO”) and Document Outsourcing (“DO”).
Technology includes the sale of products and supplies, as well as the associated technical service and financing of those products.
The Other segment primarily includes revenue from paper sales, wide-format systems, and GIS network integration solutions and electronic presentation systems.
55% Business Process Outsourcing
BPO, which provides a multitude of services for our customers’ non-core processes, is the largest component of the Services segment.
33% Document Outsourcing
Our DO business provides services that help customers optimize their printing infrastructure and streamline their communication and business processes.
12% Information Technology Outsourcing
Our ITO business allows our customers worldwide to focus on their competencies instead of their IT infrastructure.
Our Services segment comprises three service offerings: Business Process Outsourcing (“BPO”), Information Technology Outsourcing (“ITO”) and Document Outsourcing (“DO”). We provide non-core, mission-critical services that our clients need to run their day-to-day business. The services help our clients simplify the way work gets done, giving them more time and
resources to allocate to their core operations, respond rapidly to changing technologies, and reduce expenses associated with their business processes and information technology support.
Business Process Outsourcing
We are the largest worldwide diversified business process outsourcing company, with an expertise in transaction-intensive offerings tailored for several industries. Our services include:
- Human Resources Services (“HRS”): From actuarial expertise to the full
range of human resources consulting – from employee service centers
to learning, retirement, health and welfare services – HRS delivers game-changing, innovative solutions that enable our clients to focus on
their business. We differentiate ourselves around two themes of
innovation: engagement and enablement. We help HR departments
engage employees as individuals by communicating to them with
personalized messages and by enabling employees to get smarter about
managing their own health, wealth and career outcomes.
- Financial Services: We provide finance and accounting services for any
industry – from accounting to billing to procurement to accounts payable
and receivable to tax management. In addition, we provide outsourcing of
financial aid and enrollment office operations for colleges and universities,
and back-room functions such as customer
processing and mailroom operations for the financial services industry.
Based on our experience, we have a deep understanding of what drives
the customer and we move beyond simply driving out costs.
- Healthcare Payers and Pharma: We deliver administrative efficiencies to
our healthcare payer clients through our scalable and flexible transactional
business solutions, which encompass both our global delivery model and
domestic payer service centers. Services include data capture, claims
processing, customer care, recovery services and healthcare communications. No competitor has offerings in all the areas where
- Business Process Solutions (“BPS”): BPS provides customer
management with solutions to solve client issues in areas such as
customer care, tech support and services, customer acquisition and
retention activities. We also provide innovative services including social
media monitoring and customer care analytics. We are the only company
in the world that can enhance the customer experience by optimizing all of
the customer touch points, like call center support, Web-based help desks
and rapid response via social media. By providing these touch points
through one supplier, we are able to streamline efficiencies and drive down
costs while enabling our clients to maintain fewer supplier relationships.
- Healthcare Provider Solutions: We provide consulting solutions,
revenue cycle management and application services that are customized
to meet the varying and changing needs of healthcare providers. We serve
every large health system in the United States,
with contracts in all 50
states. We also help our clients improve care through an analytics solution designed to provide clinical staff information.
- Retail, Travel and Insurance: We provide technology-based transactional
services for retail, travel and non-healthcare insurance companies. We handle their data entry, mailroom, imaging input and hosting, call centers
and help desk with targeted industry focus.
- Government Solutions: We support our government clients with solutions
for child support payment processing, tax and revenue systems, eligibility
systems and services, electronic payments transfer, electronic payment
cards and unclaimed property services, among others. Our competitive
advantage is our depth of local expertise while at the same time having the
scale required to deliver and manage multiple programs for federal, state,
county and town governments.
- Transportation Solutions: We provide revenue-generating solutions in
over 30 countries. Our solutions include fare collection, toll and parking
solutions, and monitoring of red-light cameras. We differentiate through
the breadth of our offerings and innovative technology. For example, we
developed dynamic pricing algorithms, which will be used in the new Los
Angeles ExpressPark program. This program will create a new pricing system that is designed to relieve traffic congestion, reduce air pollution
and improve the efficiency of downtown LA’s transit operations.
- Government Healthcare Solutions (“GHS”): GHS serves state-funded
government healthcare programs. We provide a broad range of solutions,
from processing Medicaid claims to pharmacy benefits management,
clinical program management, health information exchanges, eligibility
and health benefit exchange services, and care and quality management.
We’ve been delivering these systems since 1971 and we apply our deep
knowledge of the Medicaid system, along with technological advances, to
simplify and automate transactional-intensive processes.
Information Technology Outsourcing
We specialize in designing, developing and delivering effective IT solutions. Our secure data centers, help desks and managed storage facilities around the world provide a reliable IT infrastructure that minimizes the chance of disruption to our clients’ daily operations.
Our ITO services include:
- Mainframe Server Outsourcing: We support our clients’ needs for
adaptable computing environments and their potential growth. We provide
comprehensive systems support services. We provide a 24/7 support
organization that maintains a unified set of tools and processes to support
our clients’ IT environments, including systems administration, database
administration, systems monitoring, batch processing, data backup and
- Network Outsourcing: We provide telecommunications management
services for voice and data networks. We are able to leverage our
enterprise agreements, proprietary tools, procedures and skilled personnel
to provide our clients with a scalable and automated processing
- Desktop Outsourcing: Our desktop services provide our clients with a
comprehensive approach to managing their end-user platforms and
devices. We design and execute desktop management strategies that
address and resolve issues such as enterprise bandwidth constraints,
unstable computing environments, areas of insecurity and unavailable
In addition, we provide Remote Infrastructure Management, Help Desk/Service Desk Management, Managed Storage, Utility Computing, Disaster Recovery and Security Services.
We are an industry leader in document outsourcing services, with more than 20 years of experience and 15,000 business professionals across 160 countries. We help companies optimize their printing infrastructure and simplify their communication and business processes to grow revenue, reduce costs and operate more efficiently. Our two primary offerings within Document Outsourcing are Managed Print Services and Communication and Marketing Services.
Managed Print Services
Xerox MPS optimizes, rationalizes and manages the operations of Xerox and non-Xerox print devices, driving efficiencies that can save clients up to 30 percent on their document-related costs. Our MPS continuum provides the most comprehensive portfolio of MPS services in the industry, supporting small and midsize businesses up through large global
enterprises. The key factors that differentiate us include our commitment to innovation and technology, including our cloud-based connectivity and integrated suite of software tools solutions, as well as our global direct and channel partner coverage and certification programs. In addition, the industry’s broadest portfolio of printing products sets us apart from our competition. We are recognized as an industry leader by several major analyst companies, including Gartner, IDC and Quocirca.
The Xerox MPS continuum complements and provides opportunities to expand existing BPO and ITO services. Within BPO accounts, Xerox MPS helps to improve workflow and enhance employee productivity. In ITO accounts, MPS complements the client IT services that we are currently managing and positions Xerox as a complete IT services provider.
Communication & Marketing Services (“CMS”)
CMS delivers end-to-end outsourcing for design, communications, marketing, logistics and distribution services that help clients communicate with their customers and employees more effectively.
We deliver communications through traditional routes, such as print,
but also through a growing number of multimedia channels including SMS, Web, email and mobile media.
We help our clients identify how their customers want to be engaged, tailor their content, translate it, personalize their communication, decide on the appropriate channel, execute on campaigns and measure the resulting success.
Our advantage comes through the breadth of our capabilities and our service-oriented approach to provide a single, seamless service for all communication and marketing logistics.
Technology includes the sale of products and supplies, as well as the associated technical service and financing of those products (that which is not related to document outsourcing contracts). Our Technology business is centered around strategic product groups that share common technology, manufacturing and product platforms.
The Mid-range business comprises a wide range of multifunction printers, copiers, digital printing presses, and light production printers and copiers sold to enterprises of all sizes.
The Entry business comprises products sold principally to small and midsize businesses.
The High-end business provides high-end digital color and monochrome systems designed for customers in the graphic communications industry and for large enterprises.
The innovation that we bring to document systems, software and integrated solutions is unparalleled in the industry and is built into our broad portfolio of technology, for businesses of any size, in any industry, around the world.
Our strategic product groups are as follows:
Entry comprises products sold primarily to small and midsize businesses through a worldwide network of independent resellers and online merchants. It includes desktop monochrome and color printers and multifunction printers (“MFPs”) ranging from small personal devices to larger workgroup printers designed to serve the needs of demanding office users. In 2011, we continued to build on our position in the
- Making high-quality desktop color more affordable and easier to
use for all businesses
- Expanding our channel reach, partner programs and capacity to support the needs of small to midsize businesses
- Launching products and solutions that help individuals, small
work teams, large workgroups or whole departments achieve their
We continued to build on our portfolio in 2011 with the launches of:
- Compact Printers and MFPs: In 2011, Xerox introduced a new line of compact color and monochrome printers and MFPs for small businesses. Xerox innovations with LED print heads and emulsion aggregation (“EA”) toner resulted in a small, low-cost product that maintains the professional appearance of the printed page. The new products introduced were: Phaser® 6000/6010 color printers, WorkCentre® 6015 color MFP, Phaser® 3010/3040 printers and WorkCentre® 3045 MFP.
- Phaser® 6700: This high-speed workgroup color printer accelerates productivity for workgroups in midsize to large businesses. With a
47 page per minute (“ppm”) print speed, advanced touch-screen interface
and optional stacker/stapler, the Phaser 6700 is ideal for workgroup teams. The Phaser 6700 also has enhanced print quality and reliability with true 2400 x 1200 dpi print resolution and a 120,000-page duty cycle.
- Phaser® 7800: This color printer lowers the cost of printing for smaller graphic design firms and in-house marketing departments. Using the Hi-Q LED print system, EA toner and hardware-assisted edge enhancement and trapping, in addition to a 45 ppm tabloid/A3-size print engine and finishing capabilities from the WorkCentre 7500 series, the Phaser 7800 also handles the heaviest paper in common use – up to 350gsm – the most flexible media handling in its class.
Mid-range comprises products sold to enterprises of all sizes, principally through dedicated Xerox-branded partners and our direct sales force. We offer a wide range of multifunction printers, copiers, digital printing presses and light production devices that deliver flexibility and advanced features. In 2011, our Mid-range business continued to build on our position in the market by:
- Making high-quality color more affordable and easier to use for small/midsize businesses and large enterprises alike
- Expanding our channel reach, partner programs and capacity to support the needs of the SMB market
- Offering a complete range of services and solutions in partnership with independent software partners that allow our customers to analyze, streamline, automate, secure and track their document workflows.
The breadth of our Mid-range product portfolio is unmatched. In 2011, we launched:
- Xerox WorkCentre® 7525, 7530 and 7535: These new multifunction printers are equipped with features to help small and midsize businesses boost productivity and meet their sustainability goals. They offer speeds up to 25, 30 and 35 ppm in color and black-and-white. The MFPs, which can print, copy, scan, fax and email, include advanced document management and workflow tools to make office work easier, and also offer unparalleled ease of use and security features. In addition, the Hi-Q LED print engine technology consumes less energy and space and produces less noise, while printing resolutions of 1200 x 2400 dpi.
Our High-end digital color and monochrome solutions are designed for customers in the graphic communications industry and for large enterprises. These devices enable digital on-demand printing, digital full-color printing and enterprise printing. Integrated solutions such as automated in-line finishing result in “touch-less” workflows (with little to no manual processing or human intervention) that allow Xerox customers to produce more jobs and grow their business. We provide products and solutions that enable our customers to delight their customers with the highest-quality output available in the market. We are creating new market opportunities in targeted application areas
with digital printing as a complement to traditional offset printing.
For more than two decades, Xerox has delivered innovative technologies that have revolutionized the production printing industry, maintaining our position as the industry leader in the number of pages produced on
digital production color presses. We continued to build on our award-winning lineup in 2011 with the launches of:
- Xerox 770: We launched the 770 late in 2011 to enhance our entry production color offerings. The 770 builds on the very successful 700 product, with productivity enhancements to speed and color management. The 770 produces output at 70 ppm, including heavyweight stocks. An in-line spectrophotometer has been added to the 770, enabling the Xerox Automated Color Quality Suite (“ACQS”). ACQS brings features usually found on higher-end products such as the 8080 and Color Press, and makes the Xerox production color portfolio the broadest in the industry.
- iGen4 Matte Dry Ink: We added an additional dry ink offering for the iGen4: matte dry ink (“MDI”). This alternative dry ink provides a flatter or more-offset-like image quality. Ideal for the expanding photo market, matte dry ink, along with the largest sheet size in the market – 26”/660mm – expands iGen4’s market-leading applications.
We are enabling print providers in graphic communications, service bureaus and large enterprises to profit and grow by meeting their customers’ specific business needs with just-in-time, one-to-one and e-based services – rather than simply manufacturing a printed piece.
FreeFlow Digital Workflow: Our FreeFlow digital workflow is a collection of software technology solutions that our customers can use to improve all aspects of their processes, from content creation and management to production and fulfillment. Our digital technology, combined with total document solutions and services that enable personalization and printing on demand, delivers value that improves our customers’ business results.
Through our industry-leading FreeFlow Digital Workflow collection and FreeFlow Print Server, we deliver three primary values to our customers – the ability to Connect, Control and Enable. Our solutions:
- Connect our customers to their customers 24/7, enabling them to be open for business around the clock.
- Control our customers’ costs, environmental impacts and security. Automated workflows provide extensive productivity gains and greatly increase document integrity by eliminating manual processes.
- Enable new applications and revenue streams such as photo books, secure event tickets and packaging.
The Other segment primarily includes revenue from paper sales, wide-format systems, and network integration solutions and electronic presentation systems from Global Imaging Systems. Paper comprised approximately 59 percent of the revenues in the Other segment.