To diversify its markets for more consistent revenues streams in an aggressive attempt of major technology manufacturing firms, they have been buying and bidding for the business process o9utsourcing services firms. The technology giants Xerox and Dell Inc. have reported their acquisition of the services companies. Affiliated Computer Services Inc. and Perot Systems Corporation. Printer and Imaging business leader XErox announced its purchased of the business process outsourcing firm affiliated computer services Inc. A week before that the Wall Street journal wrote that the computer maker Dell Inc. has agreed to purchase information Technology services Perot Systems Corporation for $3.9 billion. The tech manufacturing firms have found heavily suffering to meet positive quarterly results with the economic downturn, tech manufacturing firms have found.
The Dell Inc. also experienced revenue decrease for the quarter of 16 percent from $16 last year to $13.4 billion. The enterprise industries decrease in the technology products and equipment spending, hardware producers CEOs also admit that they even if hardware sales pick up, it will still retain the companies in a struggling mode. This pushes the technology manufacturing giants to diversify their markets through complimentary company takeovers. Xerox move to buy Business Process Outsourcing company affiliated computer services Inc., it is not a surprise anymore given that this the same strategy taken on by printer maker when it acquired EDS. The tech services division of HP contributed 38 percent of the entire company’s $9.5 billion operating profit for the year while its printing business contributes 33 percent and the pc division even less at 12 percent.
In changing the hardware manufacturing business, the International Business Machines Corp. The technology giant has moved from the hardware and machine production to information technology services business with its purchase of PricewaterhouseCoopers LLP in 2002 and the establishment of the IBM Global Services. In their services business, to further strengthen the company ‘s investment in their services business. The IBM announced that it intends to buy Bank of America Corp., wilshire Credit Corp which provides Business Process Outsourcing services to the financial institution in the mortgage sector. To expand and diversify their markets as the demand for their main products have continually dwindled.
REFERENCE:
http://www.blog.infinit-o.com/business-process-outsourcing-firms/
