Xerox and Affiliated Computer Services (ACS)
2010 | Case No. SM187
In February 2010, Ursula Burns CEO of Norwalk, Connecticut-based Xerox Corporation, wrapped up her first big move, just seven months after ascending to the top spot. Xerox—a document technology, software, services, and supplies company, had acquired Dallas-based Affiliated Computer Services (ACS), a major global player in business process outsourcing (BPO) and information technology services. The acquisition represented a bold move by Xerox into business process outsourcing, and the latest attempt to transform Xerox from a manufacturer of office equipment into a provider of business services. Burns argued that if she and her team could successfully combine Xerox and ACS, the company could achieve $100 million in synergies in the first year alone, with significant future growth prospects. External watchers and analysts, however, would be difficult to convince, though, as many argued that Xerox faced an uphill battle. This case explores Xerox’s rationale for acquiring ACS and how Burns planned to achieve her vision of growth and expansion for a company well known for, but somewhat confined by its research and technology capabilities.
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