UK division softens revenue drop for Atos Origin
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Strong UK appetite for managed services helps limit revenue decline to 3.7% but UK CEO predicts challenging year ahead
Atos Origin, the Paris-headquartered IT services company, suffered a 3.7% revenue decline to €5.1 billion in 2009, it revealed today.
Steep losses by its Benelux division and gradual decline in France and Germany were counterbalanced by a 7.4% revenue growth for the company’s UK division. That growth was driven largely by the managed services arm, which in the UK grew revenues by 22%.
According to Keith Wilman, CEO of Atos UK, this results from its decision, following a disastrous year in 2006, to offer services focused on specific sectors – including healthcare, transport, public sector and enterprise. This, says Wilman, has both attracted new customers and lead to significant cross- and upselling opportunities. Wilman said that Atos grew its UK market share during 2009.
Despite the overall revenue decline, the company’s profit rose significantly during the year, up 40% from €23 million in 2008 to €32 million. The company attributed this to its Total Operational Performance cost cutting drive, which among other initiatives has seen total headcount fall by 3%, and the number of contractors used drop by 9%.
Wilman told Information Age that Atos UK expects the first two quarters of 2010 to be challenging. This will in part be due to uncertainty surrounding the general election. “It’s going to be a very competitive environment,” he said. “Those who win will be the ones who comes out the other side with the margins in tact.”
