{"id":1812,"date":"2009-09-28T08:54:00","date_gmt":"2009-09-28T08:54:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/xerox-copies-dells-example-and-acquires-acs-but-again-wheres-the-fit\/"},"modified":"2009-09-28T08:54:00","modified_gmt":"2009-09-28T08:54:00","slug":"xerox-copies-dells-example-and-acquires-acs-but-again-wheres-the-fit","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/xerox-copies-dells-example-and-acquires-acs-but-again-wheres-the-fit\/","title":{"rendered":"Xerox copies Dell’s example and acquires ACS, but again, where’s the fit?"},"content":{"rendered":"

Is there a recurring theme here?  US-based giants with faltering commodity business models from yesteryear, making very late plays to get into the IT-BPO services business?<\/strong><\/p>\n

While I could see some synergies between <\/strong>Dell and Perot<\/strong><\/a>, this one's even tougher to fathom, unless Xerox has further plans to marry ACS with a stellar IT services acquisition.<\/strong>  <\/p>\n

ACS was one of the early darlings of BPO, and was right at the top of the competitive tree in the early 2000's whenever a large Finance & Accounting, HR or call center deal was up for grabs.  It would always give Accenture and IBM a run for their money in BPO pursuits, and had a compeling culture and engagement methodology for many of the old world BPO engagements (i.e. a lot of lift and shift and staff re-badging).  <\/p>\n

Sadly, ACS has rather fallen away in recent times, and has struggled to cope with the aggressive entry of the Indian-centric global competitors into the BPO space.  The new generation of global services providers are bringing passion and combined IT-BPO prowess<\/a> into the mix, in addition to global sourcing models that are driving down the price-points.<\/p>\n

Xerox, on the other hand, has been eyeing broader business services for a while, and I can see why they'd find part of the ACS portfolio attractive – a broader client-base, great presence in healthcare, government, hi-tech and consumer business, a strong BPO brand and global delivery presence.  ACS also has a strong IT services business, but not on the same scale as the top tier.  <\/p>\n

The real challenge for this combined entity, is to cope with the new throng of competitors in this space:  Cognizant, Genpact, Infosys, TCS et al., and not solely the incumbents such as Accenture, Capgemini and IBM.  The combined Xerox-ACS business will have a short-term potential to consolidate a commanding position in back-office BPO areas such as document management, call center, payroll, benefits admin and accounts payable.  <\/p>\n

However, clients today are spoiled for choice with other service providers which can offer the same services at lower cost.  Xerox also needs to make a quick move to push a utility delivery model, based on common processes and standards, with compeling industry-alignment<\/a>.  Continuing to push old-world BPO, where the customer shifts existing processes with limited transformation, is not a recipe for success.  <\/p>\n

My take?  If this combined entity were to merge with a strong IT services provider and develop a coherent IT-BPO strategy, then we really have something to talk about.  Funnily enough, if you combined the new Xerox with the new Dell, then<\/em> you'd be looking at a company with a lot of future potential…<\/p>\n","protected":false},"excerpt":{"rendered":"

Is there a recurring theme here?  US-based giants with faltering commodity business models from yesteryear, making very late plays to get into the IT-BPO…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,81],"tags":[],"organization":[],"ppma_author":[19],"class_list":["post-1812","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-it-outsourcing-it-services"],"yoast_head":"\nXerox copies Dell's example and acquires ACS, but again, where's the fit? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/xerox-copies-dells-example-and-acquires-acs-but-again-wheres-the-fit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Xerox copies Dell's example and acquires ACS, but again, where's the fit? 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