29 September 2009 | Jake Kanter
Procurement will contribute to annual savings of up to $400 million (£252 million) as part of Xerox's $6.4 billion (£4 billion) takeover of outsourcing firm Affiliated Computer Services (ACS).
Xerox expects total savings of up to $1.2 billion (£756 million) over the next three years as a result of increased purchasing power and ACS's expertise in reducing back-office costs. ACS is the US government's largest managed services supplier, holding contracts with more than 1,700 public sector organisations.
Xerox hopes the acquisition, announced yesterday, will help it take advantage of the "expanding" business process outsourcing market.
Chief executive Ursula Burns said: "The revenue we generate from services will triple from $3.5 billion (£2.2 billion) in 2008 to an estimated $10 billion (£6.3 billion) next year.
"We're creating a new class of provider by combining our strengths in document technology with ACS's expertise in managing and automating work processes."