Have a friend that works for Cognizant. She told me that ACS is in the process of exiting all applications contracts, applications development, and applications maintenance work and outsourcing it all to Cognizant. The ACS employees would transition to Cognizant to train their offshore replacement, then become redundant. ACS is apparently only going to do BPO work going forward. She didn't know anything about ITO, just the applications work. This is of course just speculation, but she's pretty far up in the Cognizant organization - so who knows. She said expect an announcement before December 15th. Again, just speculating, but if ACS is exiting applications - it must also be exiting US Government work too given contract structures around offshoring and using non-US citizens. Looks like a lump of coal for the holidays from ACS and Xerox executives to the employees.
Still not even close to 12, there will be small rises just due to how crazy the market is at times, that is something since it first started. However to be blind to facts against what is really there is never the less crazy. As for the rest, I wish they would improve the place; but got a feeling that current leadership doesn't think that far ahead and won't just to get quick returns as opposed to meaningful change that is needed. When major articles and others pointed out the same problems in 2009 that ACS had and they failed to plan into and instead welcomes the worst possible choices that they kicked out under Tasos and many others (who was a better leader), then that shows you the current future path.
Plan for more rebadging in Feb/March 2013 (400) to follow on the work done in (350 personnel) November 2012, you were spot on - just wrong on the timeframe. Trick is with rebadging they get around the warning notices that IBM and others have to do. They changed it with the decisions in Aug/September to get rid of all the middle management who were FT (Directors/Program Managers) and replace them with contract offshore personnel. That is why you see Amir Desai (who is famous for the 20 $5M lawsuits at Molina and the 10 lawsuits at HP as well as the ones previously at ACS still ongoing - tis true, look it up and articles written by CIO and Computerworld) coming back to XRX/ACS and the only ones getting raises or promotions in past year are those who did the same and all came from India, why do you think that Shishir got a raise after rebadging 300 all of his personnel to Cognizent in January 2012 when they had even worse performance #'s? Because they won't track their own performance as contractors/offshore and he just reports they are fine when all of the other teams suffer with them on long delays. ACS is the worst example of a place full of reverse racism there ever was. If you complain about performance, work standards, KPI's, production values, standards, quality work items - you are called racist and threatened with HR penalties from those who should not even be VP's but just "Yes" men to Ursula. Why do you think so many years with no product delivered??? Since 2006 nothing has been, there is no argument in that and nothing else is expected before end of 2014 if they keep to schedules; and yes, watch everyone of those dates slip with the offshore/contractor workers.
If this is going on, doesn't it mean that XRX will have to take a significant write down? Quite a bit of the ACS acquisition was in good will--it'll be difficult to support that valuation if ACS is now exiting many of its legacy businesses.