As part of the deal, billionaire investor Carl Icahn-who became the company's second-largest shareholder in November-is to get three seats on the service's company's board, the Wall Street Journal reported, citing sources familiar with the matter.
That company will focus on automating and simplifying business processes for clients to try to help them cut overheads.
In a separate statement, Xerox announced its agreement with Carl Icahn in connection with the governance of the BPO company, which will have nine members of the Board.
Xerox Corp (NYSE:XRX) announced its earnings results on Friday. The shares lost a quarter of their value last year and have shed an additional 13% so far this year, ending Thursday at $9.23.
Xerox, the firm best known for making printers and photocopiers, today announced that it is splitting into two publicly traded companies, in a bid to turn around its ailing fortunes. The company earned $4.65 billion during the quarter, compared to analysts' expectations of $4.73 billion.
Xerox made it official early Friday morning.
Today, Xerox's BPO operations holds a No. 2 market share, holding more than half of the electronic highway toll collection market and with all of the top 20 US health insurance carriers in its customer base.
For all of 2015, earnings plunged 52 percent to $488 million from $1.0 billion in 2014.
Xerox's star rose in the seventies as it battled IBM and Kodak for dominance in the copier business.
Xerox, which was founded in Rochester, New York, in 1906, will be joining other big United States corporations that have split apart or pared back in recent years, some driven by activist hedge funds seeking to increase returns on their shares.
Those two business lines, essentially hardware and outsourcing services, never really gelled together.
Commenting on the review process that led to the decision to reorganize, Burns endorsed the plan, saying that she believed that the company had come up with the best plan to secure the future of Xerox and position both companies to ensure their future growth and success. Its stock has tumbled 28 per cent over the past year.
She also said that company and the board of directors would not rule out a possible sale.
"This is absolutely a good thing for the reseller community", said Steve Jenkins, president of Xerox partner Precision Document Solutions of Carrollton, Texas, likening it to the split past year of Hewlett-Packard into HP Inc. and Hewlett Packard Enterprise. The document technology portion of Xerox's business, with its 40,000 employees, generated $11 billion in revenue during fiscal year 2015. "We do see, to date, strategic value in having these two businesses together", she said.
Five militants, two soldiers killed in Kupwara encounter
The militants were holed up in a residential house in Zonreshi Marsari forest area on Chowkibal-Tangdar road in the district. More than 68,000 people have been killed in the fighting and the ensuing crackdown by Indian forces.