By Lois Calderon | Posted: 19 July 2011 2227 hrs
Fuji Xerox introduces "Enterprise Print Services" allowing workers to print documents wherever and whenever using smartphones and tablet PCs.
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SINGAPORE: Copier and printer maker Fuji Xerox wants to nearly double revenues from its print outsourcing business by March 2014.
It said it will focus on becoming a printing service provider rather than a device seller as the market for office equipment becomes saturated.
Fuji Xerox, a joint venture between Japan's Fujifilm Holdings and Xerox Corp of the United States, targets 150 billion yen in revenues from its document outsourcing business for the year ending March 2014, up from 88 billion yen in 2010.
The group is weaning away from its reliance on sales of printers and copiers to drive revenues.
Instead, it is positioning itself as a document-service provider that will help companies cut printing costs.
Masaki Okano, corporate vice president of Fuji Xerox, said: "Fuji Xerox tries to shift from hardware to service provider. In that sense, we have very aggressive targets.
"Market is already saturated. At the same time, market of service is growing, double digit growth."
Fuji Xerox's print outsourcing business accounted for 9 per cent of total revenues last year, while its office equipment sales made up 24 per cent.
By 2014, the group wants outsourcing, combined with digital print services, to account for 30 per cent of its consolidated revenues.
It has introduced a new service that will allow workers to print documents wherever and whenever using smartphones and tablet PCs.
The service is dubbed as the "Enterprise Print Services", an upgrade of the "Managed Print Services".
It said that can reduce office printing costs by up to 30 per cent and cut carbon emissions by up to 10 per cent.
The shift from selling devices to being a service provider makes sense amid tough competition.
Fuji Xerox, which competes with Canon Inc and Ricoh Co Ltd in the office equipment business, is 75 per cent owned by Fujifilm and 25 per cent by Xerox.
Roger Tan, head of research of SIAS Research in Singapore, said: "Service-oriented companies providing solutions, giving clients consultative-based solutions will be more value-adding than to say 'do you want to buy a copier from me?'"
To support growth, Fuji Xerox is increasing its headcount in its regional office's global services division by 50 per cent for the year ending in March 2012, from the current 100 staff.
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