It looks as though the joint venture (JV) between Ge Capital and Xerox has outlived its usefulness.

This is the agreement from back in 2001 between the two companies where GE Capital came to the rescue of Xerox and ended up taking charge of the lion's share of the company's Accounts Receivable, among other operations such as Originations, Billing, Risk, etc. The term of the JV was supposed to go through the end of 2010, but several functions have already transitioned back to Xerox as of last month. Rumor has it that the remainder will transition back at the beginning of next year.


Up through half of 2007, the leadership that GE Capital sent to the Xerox Capital Services delivered strong results as they streamilined operations, and cleaned up the Xerox AR. Around that time, however, a regime change occurred wherein GE Capital had to reach down very low into their organization to get people to take leadership positions at XCS. The result: 2008 was the first year since the start of the JV that major performance measures were missed.

It looks like Xerox has finally awakened and smelled the coffee, and has decided to save its shareholders the ten or fifteen million dollars of annual management fee it has been paying to the now infamous GE Capital for sub-par personnel and performance.

Better late than never, I suppose.