Xerox expects over 50% revenue from India to come from services

Xerox India, the Indian subsidiary of the US-based printer, photocopier and technology and services provider, is working to increase its services business to grow faster than the product business in the country, in tune ith its global strategy. Globally, out of the $23 billion turnover posted last year, more than half is from services, while in India the sales of products is still a large chunk of the company's turnover, said Rajat Jain, Managing Director, Xerox India.

The company is expecting over 50% of its business mix in India would also be coming from services sector, in the next five years. "Last four years, the product business globally is not growing. The printing market is not growing, it is flat. However, in India the product market is still growing. But even here, the services business is growing much faster at 20-30%, where as the product business is growing at a single digit of 4-7%," said Jain. However, he refused to reveal the revenue of the Indian business of Xerox.

He added that the company is in the process of growing its services business in the country, with the new services such as Document Transaction Processing Services (DTPS), offering document management process with saving cost, it is expecting the major part of the business would come from Services in future. It would be looking at intensifying communication and marketing efforts to grab the market, said Jain. The company is offering Managed Printing Services (MPS) to corporates, under a model in which the corporate customers does not have to own or manage the printers. According to Jain, leaving the ownership and management of printers in office space would offer around five% to 10% of the total printing cost, which may vary depending on the type of the industry the companies are into.

"Printing bill of a document-centric company is significant, such as banking, telecom and insurance companies, is roughly 5-7% of the total turnover. We are saying the customers that they can save the cost they spend on buying the product and managing it, and they can also customise and restrict the number of prints taken by each employee, which would also result in cost savings," he added. The company, which is focusing on selling premium products and restricting itself into the business-to-business segment, do not advertise or sell to the domestic market. "We sell to enterprise, government, Small and Medium Enterprenuers and the jobbing market," he said.

The company, which has earlier acquired a Business Process Outsourcing (BPO) firm Affiliated Computer Services (ACS), currently has around 10,000 people working in India, mainly in the service sector, he added. The company is also looking at offering its services to the SMEs through a lease-rental model, under which it would offer products on lease or rent and offer managed services.