June 14, 2016
The OEM’s future business process outsourcing (BPO) company will be run by Ashok Vemuri.
In a press release, the OEM stated that Vemuri will become CEO of the “post-separation business process outsourcing company […] upon the completion of the separation”. Vemuri will join Xerox on 1 July and serve as CEO of Xerox Business Services, as well as Executive Vice President of Xerox, “until the separation is complete”. The OEM’s forthcoming split into two companies was revealed in January, while current CEO Ursula Burns will not remain as CEO after it splits.
The OEM plans to split into two separate businesses, one focused on services and the other focused on hardware in a strategy similar to the recent split of HP into Hewlett Packard Enterprise and HP Inc. The so-called document technology company would be worth $11 billion (€10.1 billion), while the business process outsourcing company would be worth $7 billion (€6.4 billion).
Xerox expects the separation to “be complete by the end of 2016”, and for it to “maximise return to shareholders and align with current market dynamics”. A “strategic transformation programme” will also take place for three years in both companies, with Xerox noting that it has planned “as much as” $700 million (€624 million) in savings this year, and $2.4 billion (€2.1 billion) “over three years” after the split. As a consequence, its first quarter results were poor, with expectations missed and revenues falling.
Vemuri was previously President and CEO of IGATE Corporation from September 2013 to October 2015, and prior to that had been a Senior Executive at Infosys. Burns stated that his “deep industry experience and proven track record of leading growth and corporate transformations will be instrumental for the BPO company’s future success.
“He’s an excellent leader with the right combination of operational, financial and client experience to successfully drive our BPO company’s go-forward strategy. I look forward to working with Ashok to successfully launch the new BPO company and build on its position as an industry leader”. In turn, Vemuri added that “I’m excited to join Xerox at this stage of its new path forward. Xerox’s BPO business is already in several attractive markets and has an impressive client list that includes top global brands and vital government agencies.
“The standalone BPO company will have many new opportunities, leveraging its differentiated capabilities and executing a more focused value-creation strategy for the benefit of clients, employees and shareholders”.
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