At the beginning of this year, Xerox announced plans to separate its business into two publicly traded companies. One company will run the $11 billion document technology business and the other will run the $7 billion business process outsourcing side. Creating two businesses is projected to save some $2.4 billion over the next 3 years across both companies. Now, Xerox has announced that Ashok Vemuri will become the chief executive officer of the Business Process Outsourcing (BPO) company after the separation is complete.
In its current form, Xerox handles a wide range of public sector business that will be re-aligned accordingly with the separation. Vemuri’s role with the BPO company will involve helping businesses and governments manage transaction intensive processes at a large scale. Until the split, Vemuri will serve as chief executive officer of Xerox Business Services, LLC and an executive vice president of Xerox Corporation.
Vemuri served as president and chief executive officer of IGATE Corporation from September 2013 to October 2015. IGATE was recently acquired by Capgemini. Prior to joining IGATE, Vemuri was a senior executive at Infosys where he served as a Board member, head of Americas and the global leader of Manufacturing and Engineering Services.
In addition to Vemuri, activist investor Carl Icahn will also have three seats on the BPO company board.
Xerox’s BPO business had approximately $7 billion in 2015 revenue – more than 90% of which is annuity based. The company is focused on growth markets including transportation, healthcare, commercial and government services.
“The standalone BPO company will have many new opportunities, leveraging its differentiated capabilities and executing a more focused value-creation strategy for the benefit of clients, employees, and shareholders,” Vemuri said.
The split should be complete later this year. A CEO for the document business has yet to be announced.