e development of new systems. The reasons they give are that the stock price drop will increase cost pressure on their IT Operations and new system development. They say this is not one of Xerox’s core competencies and that internal development would be too expensive. Outsourcing should prove quicker and more efficient overall. However there are some conditions to this outsourcing, and they is that Xerox remaining in control of the source code, and that once the system is developed they move maintenance back internally in Xerox. The gains from all this would mean that their would be more revenue available for R&D and new products, and more focus on new product development. Evaluation of Xerox investment in & management of technologyLike most businesses, one must spend money to make money. But it is how the money is spent that distinguishes the successful organisations from the ordinary organisations. Xerox is certainly an organisation that realises the need to invest in research and technology with the view of increasing the overall worth of the business. Even with their ongoing expenditure in this field, the management structure is such to ensure that any investment will yield a long-term competitive and profitable advantage.Research is conducted at research centres in the U.S, Canada, and Europe, in collaboration with research conducted by Fuji Xerox in Japan and Palo Alto, Calif. Advanced technology development takes place at technology centres in the U.S and Europe. In 1999, Xerox spent nearly $1 billion on research and development with a predicted 10% increase in it for 2000. Xerox Research and Technology (XR&T) drives invention, innovation and integration throughout the corporation. Advanced development teams engineer the technologies and platforms that make Xerox products superior in the industry. The focus of XR&T is in 5 key areas – digital imaging, document services, marking, materials and systems solutions. XR&T c...
