NSAM Staff Report
Affiliated Computer Services, a well known and visible sourcing services provider in Latin America and the Caribbean, is being absorbed by Xerox in a deal valued at $6.4 billion.
The acquisition immediately gives Xerox access to thousands of new customers as the Norwalk, CT-based supplier focuses on integrating its intellectual property with ACS’s services to create new solutions for end-to-end support of customers’ work processes.
Xerox has seen significant declines in core sales of copiers and printers. The deal for Dallas-based ACS is expected to triple Xerox’s service revenue to an estimated $10 billion next year from 2008’s $3.5 billion.
The acquisition mirrors larger industry trends where functions like document management are more frequently tied into overall business process functions, driven by companies’ desire to become more efficient and agile.
ACS is a familiar player in the Nearshore market. In an exclusive interview with Nearshore Americas several months ago, Tom Blodgett (wife of CEO Lynn Blodgett), ACS executive vice president and Group President, spoke about the importance ACS places on scale and dismissed public criticisms of offshore outsourcing as missing the point of where global competition is today. ACS has facilities in Mexico, Guatemala and Jamaica (through its recent E-services acquisition.) Blodgett told NSAM that he sees continued investment in ACS Nearshore activities to meet the scale requirements of clients.