IT services company Atos Origin announced today that its revenues for the first half of 2009 were down 2.4 per cent as the company sees its business shifting towards providing managed services and less consulting.
Atos Origin, the prime system integrator for the London 2012 Olympic Games, reported revenues of €2.589 billion for the first half of 2009, a decline of 2.4 per cent compared to the first half of 2008.
Its consulting business saw the biggest decline, with revenue dropping €133 million, a drop of 22.6 percent when compared to 2008.
Keith Wilman, CEO of Atos Origin in the UK said, “People will always move away from consulting in a downturn as it is easy to do and the government is cutting back significantly at the moment.”
He said the challenge for Atos Origin was assessing the type of consulting business it would have when the economy recovers.
The systems integration business also reported a decline overall, with revenues of €974m, a 9.3 percent drop, but the UK, France and Germany reported smaller revenue declines than the South American and Benelux divisions.
Wilman said this was because CIOs are looking to work their way through the economic downturn by reducing costs and will invest if need be. He said Atos teams are busy with virtualisation and shared storage projects in a variety of sectors. “These are technologies that deploy well and show results.”
The managed services division showed a profit of €974m based on 5.4 percent of growth as companies look to outsource transaction and business processes.
The UK division grew by six percent and was the star performer in Europe.
In France Atos saw revenues decline by two percent, whilst Germany had a drop of 5.2 percent. Wilman said that Atos had done a lot of difficult cost cutting a year earlier and now had to find a way to “sell its out way out of the economic problems”.
Atos Origin this week also unveiled the technology roadmap for the 2012 Olympic Games in London, and said all technology targets are on track.