XChange manager is a service that is installed as part of the Curator deployment. It's an optional installed service to allow for watchfolder ingest.
IPV suggests that if you do not plan to ingest via watchfolder, that Xchange manage is removed or not initially installed.

What is watchfolder Ingest?
XChange managers purpose is to monitor specific or multiple storage locations for any changes.
When it notices a change, such as a file being transferred into the location, the service will attempt to ingest the file.
The process of Ingesting a file that has been copied/moved into a location that is being monitored is known as watchfolder ingest.

XChange manager works with Process Engine using persistent workflows to enable the monitoring of specific locations, also using configuration housed within Process Engine to define what happens to the files that are ingested such as where the assets land within the Curator folder directory, where the Hi-Res is moved to after ingest and 
 
The pros of watchfolder ingest, is that it allows a user to quickly ingest files into their Curator system in a timely fashion to begin work on them or manage them accordingly.
The drawback to watchfolder ingest is that without configuring a sidecar XML ingest alongside, there is no point where the user can enter metadata to be fixed to the asset before the ingest takes place, instead, the user has to manually add the metadata once the asset is created within Curator.