Xerox India is changing the gears of its Indian subsidiary. It no more wants to be plain vanilla copier and printer company anymore.
With hardware and peripherals makers such as HP, Canon, Toshiba, Sharp and Ricoh among others, breathing down its neck, Xerox India sees a greater opportunity in helping the Indian corporate save on document management and office output (print, copy and fax) costs.
To cash in on the Indian opportunity, the company now plans to hire 500 additional people to expand Xerox Global Services (XGS) business in India. The major growth driver being banking & financial services companies and the government sector. Globally, XGS accounts for a quarter of Xerox's total revenues.
The division already employs 500 people, but a major chunk of them currently service its global clients. “With the use of IT getting commonplace in offices in India, document management and office output cost has become a major cost head,” says LV Sastry, associate director, XGS.
In the current financial year, the company aims to acquire 30 new clients in India, with average revenue realisation between $9-12m (Rs 40-55 crore) per client. The average deal size won by XGS India, is between $6-10m for a three-year contract.
“According to Gartner, up to 3% of the revenues of typical corporates could be spent on office output fleet (print, copy and fax). The total cost of document management and office output could vary from 5-15%. IDC says 90% of companies don't track these costs. We guarantee a minimum saving of 25% on this cost,” says Sastry.
According to Sastry, India's top 1,000 companies have expressed their willingness to invest in XGS solutions for cutting down on their document management cost. He says, that an equally bigger opportunity is opening up in the government sector. “The government has announced plans to invest Rs 800 crore in improving the infrastructure of the judicial services.
A major part of this money will be spent on improving the document management in courts across the country,” Sastry told ET. Recently, the company helped Karnataka High Court in converting all their judgements into electronic format. “We are looking for more such projects in future. Our estimate is, that between '07 and '10, the government will be the biggest spender on document management as e-governance gathers pace,” said Sastry.