Why Xerox Is Poised to Bounce Back

• Report this Comment On December 24, 2012, at 5:53 PM, neamakri wrote:

  Yes, all the usual ratios look good except this; stock price has dropped a steady 42% over the last two years. So why are people selling rather than buying?

• Report this Comment On December 28, 2012, at 4:53 PM, INV2knight wrote:

  Read your valuation of Xerox/ACS, you missed a bit that I am surprised you didn't cover including the fact that the company is now 98% offshore to 3rd party vendors (Cognizent and Infinite after having a huge lawsuit after Wipro stole most of their IP 2-3 years ago) as well as having recently laid off 2500 FT employees and 7000 contractors mostly at ACS in the past 4 months with a large gap of institutional knowledge leaving replaced with untrained, badly managed cheap workers at Infinite who produce horrible quality and miss all dates (they wind up costing 4x the FTE of the workers they replaced with 3x the number of defects and issues). They (ACS) have not produced one piece of application delivery since 2006 (Georgia MMIS) and have had the New Hampshire MMIS for 9 years, 8 months , State of North Dakota was due 3 years ago and now going on five years. State of Alaska Double that. With the heavy offshore there is no product support (Steady State) meaning no real chance to make the real money where it usually lies there. ND account lost 10M alone last year and the other account were worse with a $100M shortfall overall and there is STILL no product team since OVER 2 years ago when it was disbanded. The financials are being lied about greatly with many of the losses for 3rd parties being reported as R&D when there is NO R&D. All senior executives have not stayed beyond 14 months and seems to be a revolving door on changes and no real direction (big joke was the reason for it was they stay long enough to get the bonuses and get out so they don't have to deal with the consequences of the offshoring!)... ACS will not deliver anything fully within the next 32 months missing all contract commitments and further burning through what little funds there are. In the end XRX will break them up and sell it off, There is no steady state or end support even planned with management only looking at 30-40 day cycles as Strategic Views and any major issues for delivery in front of the CIO (Alan) and CFO (Will Saunders) as being a repeat of watching the three monkeys show (See no evil, hear no evil, speak no evil - JUST DELIVER and Say Yes). They recently just rebadged over 350 FT personnel to now being offshore contractors under Infinite and Cognizent meaning there are no groups truly at ACS/Xerox other than SCM and Marketing/Contracts which the first is way understaffed and 70% contracted out already and the other with too many sales weasels that gold plate everything as a sale with the most open ended requirements for the never ending cost wheel. Anyone ever realize that NC and SC had major lawsuits against them the past couple of years for failure to deliver??? Even worse is fact that ACS is hugely violating HIPAA for all the offshore work being done including the fact that state contracts require NONE of this to be done offshore to get the 90% DHHS funds for each project. After seeing the real work for years, there is no way to turn this around after the failures in August/September/October....those were nails in the coffin for me. Any contracts that require more than FOUR times rebaselines for major state deliveries should sober anyone up, if anything the states should wake up to these huge train wrecks. Hope that CA and Montana that just signed on keep a close watch on their accounts for the ride they are about to get. Seriously can anyone recommend A MAJOR COMPANY that does NOT have a PRODUCT yet???

• Report this Comment On January 05, 2013, at 4:34 PM, dcr1620 wrote:

  I would like to know where INV2Knight got his information. If it's anywhere near true, XRX is total crap as a company.

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