Why Would Xerox Buy ACS if Everyone is Going Paperless?

The picture above is Xerox CEO Ursula Burns with ACS CEO Lynn Blodgett. The photo was part of the announcement that Xerox will buy BPO provider ACS. 

In an interview this morning on CNBC, host Joe Kernan essentially asked Burns why are you buying ACS if the world is going paperless? Burns responsed "We don't see the world going paperless."

It's been my experience that many, if not most, journalists see the topic of document imaging as soon to be dead. Clearly Kernan believes this. 

Journalists believe this because they have for some time operated in an almost paperless environment and their response to the "news" that many offices are going paperless is that this is no longer news.

Journalist should understand that it will be a long, long time before a majority of offices have no need for document imaging technology. If this were not the case, would Xerox be paying $6.4 billion for ACS?

Comments

[Greg Walters]

LOL!

Paperless!? - not for a while. Xerox is jumping out of the model - but following the HP/EDS and Dell/Perot - this is big and another evolutionary move in the "document management" realm.

Exciting times.

[Bill Brikiatis]

Xerox is moving away from the "pushing boxes" model to a business based on services. Others that made this same type of move include Dell buying Perot Systems and HP buying EDS. Note that this is Xerox's biggest acquisition ever, so it really is a big move for Xerox and part of big industry shift.

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