Kerr [1994]; Rao [1995]; anonymous [1997]

Slides:

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Presentation transcript:

Kerr [1994]; Rao [1995]; anonymous [1997] Xerox Kerr [1994]; Rao [1995]; anonymous [1997]

Xerox IT 1994 Xerox outsourced IT to EDS 10 year contract for $3.2 billion Data center operations Telecommunications Desktop systems support Maintenance of existing systems New client/server projects

Impact Xerox had previously hired 2,700 in IS/IT Xerox retained 1,700 jobs moved to EDS 750 jobs retained at Xerox 250 jobs eliminated Xerox retained Architecture Strategy New program development

Financial Impact Xerox had an operating profit of $620 million on $14.6 billion in sales $620 million sounds pretty good 4% doesn’t sound so hot Strategy: shed non-core business Focus on strategically important business Save $1.2 billion Speed rate of moving into new technologies

Xerox IS/IT Part of massive reengineering effort Legacy system Same principle as ERP (core business computing) Process reported to be painful Effort to deal with complex issues such as those addressed by ERP