Atos is executing strategy to scale digital transformation activities

TBR perspective

TBR expects Atos will sustain its growth momentum and achieve organic revenue growth at a CAGR of between 2% and 3% from 2017 through 2019. Over the past year, Atos has been shifting its portfolio mix to next-generation solutions, building digital skills and competencies through digital certifications of employees, and attracting digitally versed graduates from leading universities. Now the company is executing on its strategy to have 40% of its revenues in 2019 generated from its Digital Transformation Factory (DTF) solutions portfolio. Emphasizing the message around execution will resonate well with clients, especially Atos’ key accounts, as they move beyond the initial digital transformation hype to actually implementing and scaling their transformational initiatives.

Due to Atos’ less developed consulting expertise in North America compared to Europe, TBR believes the company has chosen not to follow the consulting-led digital transformation trend among peers in the region and is instead focusing on execution, something Atos does well. While leading with technology and vertical industry expertise will likely work as Atos builds relationships with key accounts and cross-sells solutions across its portfolio, TBR’s research shows that both business and IT consulting matter, especially for new clients and new solutions.

Overall, Atos is persistently keeping in line with its three-year growth ambitions for 2017 through 2019, and focusing on its strengths. This is exemplified by the company’s emphasis on the Internet of Things (IoT), as Atos combines its expertise and proven track record in IT services, security and industry solutions with the operations technology (OT) and industry expertise of its global strategic alliance partner Siemens to integrate IT and OT for clients and capture opportunities in IoT.

For the third consecutive year Atos held its annual Global Analyst Conference in Boston, underscoring its persistent emphasis on expanding in North America and diversifying its global revenue base, as well as highlighting its desire to be closer to the U.S.-based IT industry analyst community. The conference was hosted by Patrick Adiba, Atos’ new North America CEO, and featured plenary and breakout sessions as well as individual meetings with TBR analysts. During the event Atos presented its strategic direction through 2019; collaboration activities with global strategic alliance partners such as Dell EMC, Siemens and SAP (NYSE: SAP); and case studies that showed Atos in action delivering measurable business results for clients.

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