If Xerox Global Services expects to grow at the rate it intends, it needs to win mega deals—those contracts worth more than $20 million, the document management vendor told analysts Sept. 8 at a meeting in New York.
If Xerox's services and consulting arm, which accounted for $3.4 billion, or 22 percent, of the Stamford, Conn. firm's revenue in 2005, is to reach its goal of $4 billion this year, it will be by winning those big contracts.
This is a sales management theory that Tom Dolan, president of the Xerox Global Services Group, calls the "mega deal" concept.
"It's all about the math and the coverage," Dolan told eWEEK. "I have a limited set of resources. If I focus those on winning a slew of deals under $1 million, I will never hit my total."
"If I have the right amount of mega deals in the pipeline mix, I know I am on target for the big number," he said.
In 2003, XGS had only three contracts worth more than $1 million. In 2005, 93 deals exceeded $1 million.
Mega deals, which are crucial to the marketing strategy of IBM Global Services, a Xerox partner, also form the basis for the company's reputation and business case studies, Dolan said.
Each of XGS's global regions will be goaled with a certain number of mega deals, separate and aside from sales tallies, Dolan said.
Regions outside Europe and North America will consider $5 million contracts a mega deal.
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