Recommended Free Tools
Yes—the concern that ACS’s IT outsourcing (ITO) business might not remain a priority at Xerox ultimately proved relevant to its fate: Xerox completed its acquisition of ACS in 2010, then sold its ITO business to Atos in 2015. But that timeline does not prove the 2009 analysts’ concerns caused the sale. ACS’s business process outsourcing (BPO) operation followed a separate path and became Conduent in 2017.
Why analysts questioned ITO’s place in the deal
When Xerox announced its planned acquisition of Affiliated Computer Services (ACS) in 2009, the companies presented the deal as a way to combine Xerox’s document technology and services with ACS’s expertise in managing and automating work processes. Xerox’s SEC-filed FAQ listed Information Technology Outsourcing as one of ACS’s five business groups, while describing ACS as predominantly associated with BPO. Xerox planned to operate ACS as a Xerox organization. Xerox and ACS’s 2009 SEC-filed FAQ
The strategic question was whether ITO would receive the same attention as services more closely tied to Xerox’s document and business-process operations. In an October 7, 2009, CIO article about the pending acquisition, ITO was estimated to make up about one-quarter of ACS revenue and projected to represent about six percent of the combined company’s revenue. Those were article-era estimates, not present-day figures.
Analysts quoted in the article questioned whether Xerox would keep investing in higher-end IT services when BPO appeared to offer clearer synergies. Stan Lepeak, then managing director of research for EquaTerra, said the acquisition “seems to signal a major decrease in the importance of the higher-end IT services business for Xerox/ACS.” Gartner Research Vice President Dane Anderson said, “It will take time for (Xerox) to decide what to do with it.” Xerox vice president Paul Hartley offered the counterargument: “In fact, a robust IT infrastructure is paramount if it is to serve as the backbone of a BPO operation.”
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallOutdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware match#1 Best Overall
What Xerox said it expected from ACS
Xerox’s announced rationale emphasized work-process management, automation and document-intensive services—not an explicit plan to close or sell ITO. In the 2009 FAQ, Xerox described ACS as a $6.5 billion company with six percent revenue growth in fiscal 2009. It valued the acquisition at $6.4 billion using Xerox’s September 25, 2009, share closing price and forecast $300 million to $400 million in annualized cost synergies during the first three years after closing. These were deal-era company figures and expectations, not proof of results.
The distinction matters: the acquisition rationale and analysts’ concerns described competing views of the deal’s priorities. The headline question—whether ITO might “get lost”—was a warning about strategic emphasis, not evidence that Xerox had already decided what to do with the unit.
Rank #2
What happened after the acquisition
| Date | Event | What it establishes |
|---|---|---|
| February 8, 2010 | Xerox completed its acquisition of ACS. | Xerox said its expanded services included both BPO and ITO. Xerox’s completion announcement |
| May 20, 2011 | CIO interviewed Xerox CIO John E. McDermott and ACS ITO COO Kevin Kyser about integration and sourcing. | McDermott described moving some work to ACS while keeping a multi-vendor approach in other areas. This was management’s account of integration at the time, not independent confirmation of business performance. CIO’s 2011 interview |
| July 1, 2015 | Xerox completed the sale of its ITO business to Atos. | This is the documented endpoint for the business unit at the center of the 2009 concern. Xerox’s sale-completion announcement |
| January 3, 2017 | Xerox completed the separation of Conduent as a separate public company focused on business process services. | BPO and ITO left Xerox through different transactions; the Conduent separation was not the ITO sale. Xerox’s Conduent separation announcement |
Did the 2009 prediction come true?
At the business-unit level, ITO did not remain inside Xerox indefinitely: Xerox sold its ITO business to Atos in 2015. In that limited sense, the concern that ITO might not be a lasting priority inside Xerox was borne out by the eventual outcome.
That is not the same as proving the analysts predicted the sale or that their concerns caused it. The documented sequence establishes the acquisition and later transactions, but does not establish the independent rationale for the Atos sale. Nor does it trace every ACS-originated customer contract, employee or asset after the transactions. What can be said clearly is that ITO went to Atos, while the BPO operation was separated as Conduent in 2017.
Quick Recap
Rank #3
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
