Xerox Signs $78 Million, 5-Year Outsourcing Agreement With Siemens
Friday, August 17, 2001
STAMFORD, Conn. Aug. 16, 2001--Xerox Corporation has recently received an exclusive five-year contract with the Siemens Information and Communication Mobile Group (IC Mobile) to outsource production and distribution of user manuals for Siemens mobile and cordless telephone customers. The contract, valued at $78 million, allows Siemens to cut costs and improve the quality of its manuals. The deal initially covers the German production plant, starting in September, and will be followed by a roll-out program covering IC Mobile's production sites worldwide. The exclusive partnership comes from a shift in Siemens' strategy for the production of user manuals and is made possible by Xerox's ability to offer a range of global outsourcing solutions. Prior to the agreement with Xerox, Siemens IC Mobile had contracts with dozens of local suppliers, resulting in heavy coordination efforts and diverse standards in quality and logistics. The new outsourcing deal will see Xerox become the prime contractor, managing the data handling, printing, packaging, logistics and distribution of IC Mobile's user manuals. "This deal supports our continued effort to become one of the world's top providers of mobile phones and will result in significant cost savings,'' said Karl-Heinz Muller, vice president of global procurement, Siemens IC Mobile. "We are a major player in one of the most dynamic markets, and we partner with only the best-in-class. We expect our partners to be exceptionally proactive in terms of process and cost optimization, and we are confident that Xerox meets all these requirements.'' The cost savings for Siemens IC Mobile come from a reduction in the number of suppliers, rationalization of print management through the use of a single partner, improved time-to-market, and guaranteed global standards ensuring consistent quality across all user manuals. "This important project uses our expertise in `just-in-time' solutions; document, content and project management; process optimization; and translation services,'' said Jean-Noel Machon,president, Xerox Europe. "It highlights the strength and breadth of Xerox expertise and demonstrates our ability to combine a broad range of solutions and services to provide a single integrated offering to our customers.'' The agreement was negotiated between Xerox Germany and the IC Mobile group of Siemens AG. As part of the contract, Xerox will establish an office at Siemens' German head office to manage all aspects of the program, through Xerox Business Services. The technical solution supporting the program is Xerox's PrintCise software platform, a customized scheduling software that can manage both print-on-demand and offset printing jobs - though Xerox intends to transition most of the printing to Xerox DocuTech digital machines. Siemens IC Mobile offers a complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. For more information, visit http://www.icm.siemens.com/main.html This is the second major contract Xerox has signed with Siemens in the past several months. Xerox also holds a six-year, multimillion-dollar contract with Siemens IT Services in Germany to set up networked publishing centers for the printing industry.