Segment Information

Our reportable segments are Technology, Services 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 SMB 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

(in millions)



$10,349 Technology
Technology includes the sale of products and supplies, as well as the associated technical service and financing of those products.

$9,637 Services
Our Services segment comprises three service offerings: Business Process Outsourcing (“BPO”), Information Technology Outsourcing (“ITO”) and Document Outsourcing (“DO”).

$1,647 Other
The Other segment primarily includes revenue from paper sales, wide-format systems, and GIS network integration solutions and electronic presentation systems.


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.

Technology includes the sale of products and supplies, as well as the associated technical service and financing of those products. The Technology segment is centered around strategic product groups that share common technology, manufacturing and product platforms.

Technology Revenue Mix


56% Mid-range
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.

22% Entry
The Entry business comprises products sold principally to small and mid-size businesses.

22% High-end
The High-end business provides high-end digital monochrome and color systems designed for customers in the graphic communications industry and for large enterprises.

Our strategic product groups are as follows:

Entry comprises products sold principally to small and mid-size businesses through a worldwide network of independent resellers, and 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 2010, we continued to build on our position in the market by:

  • Leveraging the market transition from larger centralized devices to more-affordable desktop-centric devices with a full portfolio of products
  • Making high-quality desktop color more affordable and easier to use for small businesses and large enterprises alike
  • Expanding our channel reach, partner programs and capacity to support the needs of the SMB market.

Our Entry business products include:

  • ColorQube 8570/8870: Featuring advanced cartridge-free solid ink, the ColorQube 8570 and ColorQube 8870 color printers are powerful, no-fuss and waste-conscious printing solutions that are simple, highly productive and affordable, with the advantage of superior color output. At 40 pages-per-minute (“ppm”), these products are perfect for small to mid-size workgroups.
  • Phaser® 7500: This 35 ppm color laser printer allows small and mid-size workgroups to attain professional-quality results. Key features include improved print quality as a function of 1200 dpi, new “Color by Words” Xerox technology – a natural language technology enabling easy and intuitive color adjustments – enhanced media handling capabilities and longer lives on customer-replaceable parts.
  • WorkCentre® 6400: The WC6400 is Xerox’s first desktop multifunction printer that utilizes Xerox’s Smart Controller platform and supports EIP, Xerox’s open platform allowing customization of applications on the MFP. The WorkCentre 6400 is also able to handle busy volumes, with print speeds up to 32 ppm color/37 ppm mono, and offers basic finishing, Print Around and ID Card Copy.

Extensible Interface Platform

Xerox Extensible Interface Platform (“EIP”) is a software platform upon which developers can use standard Web-based tools to create server-based applications that can be configured for the multifunction printer’s (“MFP’s”) touchscreen user interface. It brings a new world of possibilities to the Xerox MFP – the ability to adapt to, support and automate the work processes of our customers.

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 2010, our Mid-range business continued to build on our position in the market by:

  • Enhancing our already strong product portfolio, making color more affordable, easier to use, faster and more reliable, while maintaining our leadership position in black-and-white
  • Driving to a leadership position in the combined color page printer and color MFP market segments
  • 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. We continued to build on this portfolio in 2010 with the launches of:

  • Xerox WorkCentre 7120: Xerox’s new multifunction printer combines affordable color with high-productivity workflow tools. Today’s MFPs do far more than copy and print – they improve the way work gets done; the WorkCentre 7120 helps SMBs maximize office productivity and produce affordable, impactful color documents.
  • WorkCentre 7545 and 7556: These new multifunction printers are equipped with features to help mid-size businesses and large workgroups boost productivity and meet their sustainability goals. They offer speeds up to 45 and 50 ppm color and 45 and 55 ppm black-and-white, respectively. The MFPs, which can copy, scan, fax and e-mail, include advanced document management and workflow tools to make office work easier.
  • Xerox Color 550/560 Digital Color Printer: The new Xerox Color 550/560 printer, with an easy-to-use color touchscreen, benchmark image quality and flexible finishing options, is an efficient choice for quick-print shops, small commercial printers, in-plant operations, advertising agencies, creative shops and office settings. It is the perfect fit in any print setting for applications ranging from marketing pieces to office documents.

Xerox Mobile Offerings

These offerings make it easier for office workers to print from anywhere, at anytime. Mobile office workers and IT professionals stay productive with three tools that make it easier than ever to print, regardless of location:

  • Xerox Mobile Print Solution makes mobile printing simpler and more convenient. It keeps your business documents secure while printing from any smartphone or electronic device, with no need to download cumbersome drivers, tools or software.
  • Xerox Mobile Express Driver enables printing from a PC to virtually anywhere. It is a single, universal printer driver that can be downloaded to a PC and used to print to any PostScript device on a network, including printers made by other manufacturers.
  • Secure Access Unified ID System allows remote workers and students to send documents to a centralized print server and activate their job at the device with a swipe of their magnetic or proximity ID card for authentication. This gives users quick, easy and secure access to documents wherever they need them.

We provide High-end digital monochrome and color systems designed for customers in the graphic communications industry and for large enterprises. These High-end devices enable digital on-demand printing, digital full-color printing and enterprise printing. We are the leading provider in the market offering a complete family of monochrome and color production systems, business development tools and workflow solutions. 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, we have delivered innovative technologies that have revolutionized the production printing industry. We are the industry leader in the number of pages produced on digital production color presses. We continued to build on our award-winning lineup in 2010 with the launches of:

  • Xerox Color Press 800 and 1000: These new products are additions to the portfolio and are positioned below iGen4, and above the DocuColor 8002. They offer customers a set of new innovative features. The optional fifth housing for clear dry ink allows users to create new applications and/or add value to existing work. The clear dry ink allows for images and text to be highlighted for visual impact, or digital watermarks applied for artistic effect. Flexible finishing options include high-capacity stackers, booklet makers and a tape bind option exclusive to Xerox.
  • Xerox iGen4 EXP: We added more capabilities to the flagship of the production color portfolio, iGen4. The industry’s most reliable and productive press added a number of new options that expand the reach of iGen, enabling new applications that were previously done only on offset presses. The expanded sheet size of 26", or 660mm, allows print providers to produce full-size trifold brochures and more multi-up images such as postcards and business cards per page. A new touchless workflow allows for jobs to be completed without manual intervention or setup, saving time, reducing errors and producing more-sellable prints. Integrating with the Adobe PDF print engine drives quick and reliable printing of native Adobe PDF files.

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.


We are behind the scenes managing the essential processes that your business can count on to be successful.

Our Services segment comprises three service offerings: Business Process Outsourcing (“BPO”), Document Outsourcing (“DO”) and Information Technology Outsourcing (“ITO”). We provide non-core, mission-critical services that our clients need to run their day-to-day business. The services we provide enable our clients to concentrate on their core operations, respond rapidly to changing technologies and reduce expenses associated with their business processes and information processing.

The majority of our Services business is the result of our acquisition of ACS in February 2010.

Services Revenue Mix


53% Business Process Outsourcing
BPO, which provides a multitude of services for our customers, is the largest component of the Services segment.

34% Document Outsourcing
Our DO business provides services that help customers optimize their printing infrastructure and streamline their communication and business processes.

13% Information Technology Outsourcing
Our ITO business allows our customers worldwide to focus on their competencies instead of their IT infrastructure.

Business Process Outsourcing

We are the largest worldwide diversified business process outsourcing company, with focused offerings in education, transportation, communication, healthcare, government, finance and accounting services, manufacturing, consumer goods and retail. Our BPO service offerings are focused, transaction-intensive, back-office functions. Our BPO services include:

  • Human Resources Services: We provide a comprehensive portfolio of human resources solutions that allow our clients to benefit from best practices, our subject matter expertise, consulting and technological solutions. Our human resources services include:
    • – HR Consulting
    • – HR Outsourcing
    • – Total Benefits Outsourcing
    • – Learning.
  • Customer Care: One of our core values is delivering a positive customer care experience. We have years of experience providing customer care outsourcing services that can improve productivity, efficiency and customer retention. Services include:
    • – Strategic Advisory Services
    • – Account Activations
    • – Collections
    • – Device/Technical Support.
  • Finance and Accounting Outsourcing: Our finance and accounting services allow our clients to benefit from our global delivery model and our quality management systems, resulting in better accuracy and timeliness, and reduced risk for our clients. Services include:
    • – Accounts Payable, Accounts Receivable
    • – Billing
    • – General Accounting
    • – Tax Management
    • – Treasury and Risk Management
    • – Time and Expense Reporting.
  • Healthcare Payer and Insurance: 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:
    • – Healthcare Payer Claim Processing
    • – Healthcare Payer Customer Care
    • – Cost Recovery, Audit, Cost Avoidance.
  • Healthcare Provider: Our healthcare provider business offers services and solutions to meet the critical financial, operational and clinical needs of the healthcare provider industry. We offer a full range of services, including:
    • – Consulting Solutions
    • – Revenue Cycle Management
    • – Application Services.
  • Government Services and Solutions: We help federal, state and local government agencies by providing services that improve their operating efficiency, increase the level of service provided to their constituents, increase their revenue streams and reduce overall operating costs of service delivery. Our service offerings include:
    • – Child Support Payment Processing
    • – Electronic Benefits Transfer
    • – Student Loan Servicing
    • – Government Records Management
    • – Electronic Payment Cards.
  • Government Healthcare: We provide our state government clients with health program management solutions to help them administer their programs and control the cost of healthcare. We support the full healthcare continuum, including member enrollment, claims processing and health management. Our service offerings include:
    • – Medicaid Program Administration
    • – Healthcare and Quality Management
    • – Eligibility and Enrollment Solutions
    • – Pharmacy Benefits Management.
  • Transportation Solutions: We help transportation agencies worldwide address the unique challenges associated with revenue collection and regulation compliance services. From fare collection to toll and parking solutions and from back-office processing to infrastructure installation, we provide systems and services that help governments with their transportation problems. New innovations include the Smart Card Fare Payment Solution – a streamlined and seamless fare payment system. By adopting a fare payment system based on the financial industry’s open standards, transit agencies can now enable riders to tap contactless bankcards for point-of-entry payments.

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.

With our global Information Technology Outsourcing solutions, commercial businesses and government organizations worldwide can focus on their competencies instead of their IT infrastructure.

Throughout our global IT services outsourcing portfolio, we:

  • Infuse thought leadership and innovation
  • Manage to the highest level of quality for service delivery
  • Enable our customers to transform their organization.

Our ITO services include:

  • Data Center Outsourcing: 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 capacity planning.
  • Mid-range Server Outsourcing: We support our clients’ needs for adaptable computing environments and their potential growth. We provide comprehensive systems support services.
  • 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 environment.
  • Remote Infrastructure Management (“RIM”): We provide RIM services that allow our clients to retain control of their IT assets but outsource the day-to-day IT operations management.
  • Help Desk/Service Desk Management: We deliver specialized service desk support from self-service to remote management and diagnostics.
  • 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 network resources.
  • Managed Storage: Data storage requirements have become larger and more complex. We help our clients define, monitor and optimize their data storage requirements while reducing the complexity of their storage environments and associated costs.
  • Utility Computing: We support large corporations with our utility computing model. Utility computing provides “pay for use” pricing for mid-range server clients, which provides variable pricing and relieves our clients from the burden of asset ownership.
  • Disaster Recovery: We approach disaster recovery as a multidisciplinary function. We assess our clients’ specific enterprise requirements and then deploy solutions based on these requirements.
  • Security Services: Our solutions provide security from the desktop to LAN/WAN and Internet levels. We leverage a combination of mature methodologies and industry best practices that afford increased ability to protect valuable data while also satisfying industry audit requirements.
  • IT Commercial Services: We possess category knowledge, tools and processes that allow us to reduce IT and telecommunication costs for our clients.

Cloud Computing

Xerox is uniquely positioned to bring the best of enterprise-level Cloud services to our clients. We’ve been involved in virtualization and on-demand services for more than 20 years – driving the evolution from mainframe computers to the ASP model to utility computing. Cloud is the next step in this evolution; representing the maturation of what our company has been doing all along. Our strength is delivering secure, enterprise-level Cloud solutions to large organizations with multi-site applications and large transaction volumes. We create and execute the entire solution – from the initial consultation and development of the most appropriate Cloud strategy to the phased transformation.

Document Outsourcing

We are an industry leader in document outsourcing services, with more than 20 years’ experience and 15,000 business professionals across 160 countries.

We help companies optimize their printing infrastructure and streamline their communication and business processes to grow revenue, reduce costs and operate more efficiently. We specialize in the planning and delivery of the following services:

  • Managed print services for workplace, production environments and virtual worker printing sites
  • Consolidating in-house production and commercial printing under a single point of control
  • Improving communication processes and back-office functions associated with creating, capturing, managing and routing customer, employee and supplier information
  • Designing, authoring and translating technical and user documentation
  • Creating personalized, multi-channel marketing communications.

Through these services, we:

  • Help our clients save up to 30% on printing costs through managed print services that optimize the use of document systems across an entire enterprise
  • Simplify document-driven processes, such as forms processing and records management
  • Manage in-house print operations and special events by handling technology procurement and print/copy centers
  • Make information easier to manage and find through digital imaging, archiving and indexing
  • Generate a better return on investment through personalized, multi-channel marketing communications
  • Improve commercial print operations, sales and profits through document outsourcing.

As the market leader in managed print services, our approach to optimizing across all print environments allows our customers to print from anywhere to anywhere in a seamless way, while ensuring compliance with budget targets, security protocols and environmental sustainability programs.


The Other segment primarily includes revenue from paper sales, wide-format systems, and GIS network integration solutions and electronic presentation systems. Paper comprised approximately 58% of the revenues in the Other segment.