BENGALURU: Former Igate CEO Ashok Vemuri has been named the CEO of Xerox’s $7-billion BPO business. The BPO division will become a separate company later this year when Xerox splits itself into two – one focusing on business services and the other on the hardware and document technology business that includes printers and copiers.
Vemuri, who will join Xerox on July 1, will be executive vice-president at Xerox until the separation is complete and post the split, he will serve as the CEO and a director in the new BPO firm. Vemuri will get a base salary of $1 million annually, with an additional target incentive and bonus payout valued at $2.5 million in the current year.
“Ashok’s deep industry experience and proven track record of leading growth and corporate transformations will be instrumental for the BPO company’s future success,” said Xerox chairman and CEO Ursula Burns. “He’s an excellent leader with the right combination of operational, financial and client experience to successfully drive our BPO company’s go-forward strategy,” she said.
Vemuri built his reputation at Infosys, which he joined in 1999 and where he rose to be president and board member. His last role in Infosys was as head of Americas and global head of manufacturing and engineering services. He quit Infosys in 2013 to join Igate, and exited Igate three months after its acquisition by French IT major Capgemini in a $4.04 billion deal in July 2015. Vemuri was instrumental in this strategic sale and Igate’s stock rallied to new highs under him. He refreshed Igate’s strategy, giving more powers to vertical heads and providing a stronger push for consulting revenue.
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Vemuri will take on the Xerox role at a time when the BPO industry is going through a transformation, with the industry embracing the as-a-service model. Xerox said in its annual report that the addressable market for its global BPO business is $275 billion.
“I’m excited to join Xerox at this stage of its new path forward. Xerox’s BPO business is already in several attractive markets and has an impressive client list that includes top global brands and vital government agencies. The standalone BPO company will have many new opportunities, leveraging its differentiated capabilities and executing a more focused value-creation strategy for the benefit of clients, employees and shareholders,” Vemuri said.
The BPO business accounts for 72%, or 103,000, of the 143,600 employees in Xerox. About 10,000 to 15,000 of those BPO employees are in India. Vemuri’s selection indicates that Xerox intends to strengthen the India operations. The BPO focuses on industries including transportation, healthcare, commercial and government services and financial services. Its service offerings include customer care, transaction processing, finance and accounting, and human resources.
It was in January that the $18-billion Xerox announced its plan to split itself into two publicly-traded companies. In conjunction with the separation, Xerox also began a three-year strategic transformation programme targeting a cumulative $2.4 billion of savings across all segments.