Despite the telecom vertical witnessing a slowdown, Xerox still receives maximum revenues from this vertical. Rajat Jain, the first Indian to be appointed MD of Xerox in India, talks about succeeding in the quality-conscious and lucrative Indian market.
Xerox recently underwent a business transformation. What was it about?
From a pure products company, we recently ventured into the managed services space, which today accounts for 50% of our revenues. We saw a gap where customers were increasingly demanding a product plus service, with customisation for their individual needs. The benefit of this model is that a company does not need to invest in multiple expensive machines, and rather can just outsource the same, paying only for the service instead. This also means moving from an investment-heavy capex model to a cost-efficient opex model. In India, we are helping customers such as Vodafone, Cisco, Standard Charted Bank and Alstom to save on their costs, improve their print infrastructure and boost efficiencies through our ‘managed print services’.
Why did Xerox get into the BPO space?
Xerox Corporation got into the BPO space with its acquisition of Affiliated Computer Services in February 2010. We were already uniquely positioned in the area of ‘smarter document management’ and could automate the time-consuming business process operations to make these processes more efficient and effective. Hence, entering the BPO segment seemed like the logical next step for Xerox.
Which space do you see the most demand from -- BPO, large enterprises or the government? What are the kinds of revenues generated from each of these verticals?
In the case of India, we see a large opportunity for growth in all these areas. India remains the world capital for BPO and our GDP growth remains one of the highest in the world. The services industry is growing at 50% and in the technology area, the industry is seeing an annual growth of about 15%. Large enterprises contribute to 60-65% of our revenues, while governments and SMBs (small and medium businesses) contribute to 25% of the revenues. That said, the largest demand for managed print services comes from the telecom and BFSI (banking, financial services and insurance) segments and this will continue to remain a focus area for Xerox in India. Emerging segments include retail, manufacturing, healthcare, life sciences and utilities.
As the first Indian MD of Xerox India, what are your goals to drive the company’s India business?
After several disappointing quarters, Xerox is now looking at accelerating our services business and getting back to robust growth in the technology business. While India has huge potential, it also has its own set of unique challenges. The customers are extremely value-conscious, but at the same time they are also looking for world-class quality. To succeed in India, therefore, you have to look at building scale, localisation and local innovation, helping you improve your margin and market share. We already have over 1,000 partners and a channel base across the top 200 cities in India. We will continue to strengthen our channel coverage and improve the partner productivity to drive our growth in existing cities as well as emerging towns.