Save $1.5 billion by 2021
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Typical Xerox on the cheap ..only savings is by lay-off or outsourcing.Check historical record these past 15 years...
Don't forget sales makes big commissions regardless if it displaces previously placed xrx gear not up for renewal, or if the risk of hurting the customers profitably is too big, or if there are negative impacts to xrx post install revenue streams (like higher service costs).
1hmh is right on. Xerox managers typically claim savings when the big picture is either increased costs overall, or just movement to a different budget center. Something systemic allows this to occur. Not sure what but seems proper financial oversight wouldnuncover it.
Part of project own it is parts savings. Xerox launched a huge effort to reman/cannibalize parts. However a large portion are doa and even the best ones don't make half the life of a prime. We will change a reman part 3x-4x on the same machine where we would have to change it only once had we used a prime. The cost with shipping turns out to be 2x-3x the cost over the contract. Not to mention the added service calls/fuel/etc as the parts don't last.
Yet on paper they score those 4x reman on the same machine as saving the expense of 4x primes. This is a perfect example (one of many) how how Xerox increases costs while patting themselves on the back about all the money they saved.
There is so much ridiculous waste I see day to day. There are huge, real savings opportunities that are ignored in pursuit of activities like above.
Don’t agree with the HP deal being a good idea besides aligning xerox for a future merger. Trying to sell deals with only OEM supplies/service on two major brands will drive up the cost. HP just wants access to the R&D and patents to see there value and then buy those pieces meaning even direct employees might be impacted.
I do feel for all the people impacted (I am with XBS) but these are business and financial decisions and nothing more.
5 years ago stock was between $37 - $38 (in a bad economy) , today it's between $34 - $35 (in a strong economy) and they are paying the CEO 4x what any other Competitive CEO makes.... you tell me how good project own it is.