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Xerox Q&A: ACS Acquisition and Its Expected Impact on the Channel

Jim Firestone said ACS would expand Xerox’s services business alongside hardware, while partner resale and subcontracting remained tentative possibilities.
From TheFinanceBase Team2 min to read
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In a historical CRN interview, Jim Firestone, then identified as Xerox’s president of corporate operations, said the ACS acquisition would add business-process services to Xerox’s business without ending its hardware business or its channel distribution of hardware and solutions. He described partner resale and subcontracting of ACS work as possibilities still in their early stages—not as established arrangements.

Would ACS change Xerox from a product provider into a service provider?

Firestone’s answer was no: he said Xerox would retain its hardware business while substantially expanding services. The interview presented ACS primarily as a business-process outsourcing (BPO) company, with work such as medical claims, human-resources processing, and transportation claims processing. Firestone also described some IT outsourcing as support for BPO.

Firestone called ACS “the largest diversified business process outsourcer in the world” and “the second largest Medicare/Medicaid claims processor in the country.” Those are claims attributed to him in the interview; the retrieved CRN text does not provide a date or independent evidence to verify them.

What did Firestone say about Xerox resellers?

He said Xerox hardware and solution products would continue to be distributed through the channel, and described support for that channel as a priority. He expected little impact on value-added resellers (VARs), while acknowledging that a few providers might compete with Xerox in solutions. These were Firestone’s acquisition-era statements, not confirmation of current Xerox policy.

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How did he distinguish Xerox’s work from ACS’s?

Firestone contrasted Xerox Global’s production and printing work with ACS’s handling of the information within documents, including data extraction. He said ACS would operate separately and report to Ursula Burns. That distinction was his account of how the businesses fit together; the interview does not provide an independent operational assessment.

Could Xerox partners resell or subcontract ACS services?

Firestone said it was too early to know whether ACS services would fit partner resale. He expressed interest in developing hosted service versions for small and midsize businesses, and said ACS might subcontract work to Xerox partners. The interview describes these as potential opportunities, not completed channel programs or commitments.

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How did Firestone compare Xerox’s strategy with Dell and Perot Systems?

He framed Xerox’s interest as BPO services that sit above and use infrastructure, in contrast to what he characterized as Dell’s focus on infrastructure. This was Firestone’s explanation in the interview, not a neutral or independently established comparison of the companies.

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