One of the core questions fluttering around the Xerox acquisition of ACS that continues to be ambiguous is how ACS’s ITO business fits into the combined Xerox/ACS picture. We have listened carefully to comments from Xerox and ACS leaders and examined the position and trajectory of ACS’s ITO initiatives to build a perspective on this question. Our emerging view suggests that ITO is very important to Xerox’s plans to capture value from the key leverage points cited by leadership. While many challenges remain in realizing benefits from the deal, we conclude that Xerox must see ITO as a core element that will help them unlock and maximize the combination’s potential.

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