Nevertheless, rather than depending on the diminishing demand for hardware, Xerox is increasingly expanding its services division. "Just a couple of years ago, 80% of our revenues would come from selling hardware and 20% from providing services. Now it is split equally," says Mr Tessler. The big change in the company's income model came in 2009, when Xerox announced the $6.4bn acquisition of Affiliated Computer Services, an IT services and business process outsourcing provider.