Atos, the international information technology services company, announced 2012 first quarter revenue of EUR 2.163 billion, representing an organic growth of 2.4 % compared to the first quarter of 2011.

Thierry Breton, Chairman and CEO, said: “The first quarter showed a good start of the year confirming an expected solid year 2012. Revenue again grew more than 2% thanks to our strategy following the acquisition of SIS to focus on strengthening our recurring activities. As we committed, the Group is cash positive for the first time since its creation. I am also glad that we finalized the alliance with EMC and VMware to create Canopy, which positions Atos as one of the leading global players in cloud services.”

Atos reiterated its previous forecast that it expects a slight revenue organic growth and an operating margin rate to 6.5% of revenue compared to 4.8% for proforma 12 months 2011.

Representing 46% of Atos, Managed Services revenue was EUR 995 million, up +3.9% compared to the first quarter of 2011. Growth was driven by several geographies including Germany (+6%), North America (+7%), Central & Eastern Europe (+10%) and the UK (+3%). In Benelux and Iberia, revenue was almost stable despite the continued tough market conditions. Revenue in France was down -6 per cent year-on-year but returned to growth sequentially compared to the third and the fourth quarter of 2011. Following the acquisition of SIS, the Service Line has been able to grow by signing multi-year contracts with new customers.

In Systems Integration, representing 25% of Atos, revenue was stable compared to the first quarter of 2011 at EUR 536 million. The start of the year was better than anticipated. The activity grew in Germany, North America, North & South Western Europe and Latin America. Revenue in Benelux showed a further decline due to the continued difficult market conditions. In France, as planned, actions initiated last year to turnaround and to improve the situation are now being implemented.

Representing 22% of Atos, Hi-Tech Transactional Services & Specialized Businesses (HTTS & SB) revenue was EUR 474 million, up 2.9% year-on-year. HTTS business grew by 5.7% mainly driven by e-CS revenues at +14.9%.

For Consulting & Technology Services, which represent 7% of Atos, revenue was stable compared to the first quarter of 2011 at EUR 158 million. In Consulting, utilization rate was 72% compared to 70% for full year 2011 and stable at 84% for Technology Services. The increased activity in Technology Services in France (9%) mainly for Public Sector, and in Consulting in the UK, offset the decline of the Service Line in the Netherlands (down 8%) in Financial Services and Manufacturing sectors.

For the third quarter in a row, the growth was driven by most of the GBUs, and in Europe primarily by the Northern, Central and Eastern geographies.

In Germany, revenue was EUR 418 million, representing a growth of 6.1%. Managed Services strong growth came from the ramp-up of new contracts signed in 2011 and higher business volumes in the Manufacturing sector. In Systems Integration, revenue grew by 4.9% with additional projects which more than compensated the phase out of the Application Management contract with a large German Bank.

In the United Kingdom & Ireland, revenue was EUR 390 million, up 5.8% compared to the first quarter of 2011. Managed Services was up 3.1% due to increased volumes and to the start of delivering new deals won in the fourth quarter of 2011. Systems Integration grew 1.3%. HTTS & SB grew 10.2% due to higher project revenue and volumes notably in the Transport sector.

In Benelux, revenue in the first quarter was EUR 248 million, down 5.2%. In Managed Services, the activity was almost flat compared to the same period last year, thanks to Financial Services in the Netherlands and new clients in Belgium. Difficult market conditions, price pressure and lower volumes continued to affect both Systems Integration and Consulting & Technology Services. The GBU remains focused on margin protection by improving workforce management.

Revenue in France was EUR 255 million, representing an organic decline limited to 1.6% year-on-year, following 6% in the third quarter of 2011 and 4% in the fourth quarter of 2011. In Managed Services, the activity was stabilized compared to the fourth quarter of 2011 thanks to increased business in Energy & Utilities and stable volumes in Financial Services. Technology Services grew by 9% year-on-year with an improved utilization rate above of 84%. In Systems Integration, revenue was down in Manufacturing (automotive industry) and with mobile phone operators.

Revenue for Atos Worldline was EUR 226 million up 1.8% year-on-year. Payment activities were stable due to lesser volume growth in the credit card business in Belgium. eCS was up 8.9% with additional project revenue and hardware sales in France. Financial Market division was stable year-on-year.

In North America (NAM) revenue was EUR 134 million, up 8.4%. Managed Services revenue was up 6.6% following stronger activity with large manufacturing companies. Systems Integration reported a solid growth thanks to an increase of business in Financial Services.

In Central & Eastern Europe (CEE) revenue was EUR 130 million, up 1.2%. Managed Services revenue increased 9.7% thanks to higher volumes in several countries including Turkey and Czech Republic. Systems Integration was down 9.0%. The decline was due in part to less discretionary spending in the Public sector in several countries. It was also due to a one-time hardware sale in Austria in the first quarter of 2011.

In North & South West Europe (N&SWE) revenue was EUR 99 million, up 5.5%. The GBU had a strong growth both in Managed Services and Systems Integration, respectively up 9.2% and 15.2%. The increase materialized primarily in the Manufacturing sector and overcompensated less hardware revenue in the Civil & National Security business compared to the same quarter last year.

In Iberia, revenue was EUR 82 million, down 4.2%. While Systems Integration, thanks to the Telco sector, and Managed Services reported stable revenue, Consulting & Technology Services suffered from the economic conditions mainly in Public Sector and Financial Services.

In Other Business Units, revenue was EUR 181 million, up 2.7% compared to the first quarter of 2011.

Source:  www.top-consultant.com

The Home Retail Group (HRG) has signed a four-year agreement with Atos, an international IT services company, for the implementation of a business account scheme to allow SME business customers to purchase goods and services in-store, online and via Argos Direct. The new For Business account card will be launched by HRG’s business to business division, Argos for Business.

Danny Clenaghan, Managing Director of Argos for Business said: “We are committed to providing excellent service to our customers and we are excited to extend this service to the SME market. We are confident that Atos will deliver this service to the excellent standard our customers expect. The For Business account allows businesses instant access to over 35,000 product lines at great value prices, supported by excellent account management tools.”

Iain Kingsley, SVP for Hi-Tech Transactional Services in the UK Atos, said: “We are delighted to add Home Retail Group to our client list, which extends our business account scheme in the retail sector. We have developed an excellent offering in payment services and this contract is further evidence that they can be adapted and tailored to meet the needs of different clients to help them attract business customers, drive sales and therefore gain competitive advantage.”

Atos, a leader in transaction services, will be providing full management of the business account card for small to medium enterprises in the UK and providing an end to end service from application to payment. The scheme will commence in April with a trial across a region of Argos stores.

The on-line account support facility will allow customers to manage their account, control costs and access various management information tools including a line item detail invoice archive.

Source:  www.top-consultant.com

AXA has entered into an agreement to sell Bluefin’s employee benefits consulting business, Bluefin Corporate Consulting (BCC), to Capita plc for a cash consideration of £50 million on a cash-free, debt-free basis. The transaction is subject to regulatory approval and is expected to complete in the second quarter of 2012.

AXA will retain the Bluefin trading name. Bluefin’s other operations, including Bluefin Insurance Group, which is core to AXA’s Commercial Lines operation, and Bluefin Personal Consulting, which provides wealth management services, do not form part of this transaction.

Paul Evans, Group Chief Executive of AXA UK and Ireland commented: “Following the sale of the AXA Life business in 2010, and in particular the corporate pensions business, the consulting services offered by BCC are no longer aligned to our long term strategy and core lines of business. We are pleased to have entered into an agreement with Capita which will ensure that BCC and its customers benefit from the scale and market presence offered by becoming part of Capita’s enlarged employee benefits operation.”

Source:   www.top-consultant.com

Atos, an international IT services company, has signed a 10 year contract worth in excess of £100 million with EDF Energy to provide data centre services for its UK business. The new Atos solution will consolidate EDF Energy’s data centre infrastructure to cut costs by 20% over the life of the contract.

Ursula Morgenstern, CEO for UK and Ireland at Atos, said: “This contract extends our relationship with EDF Group and represents the start of a long term partnership between Atos and EDF Energy in the UK. It also consolidates our leading position in managed services in Europe following the acquisition of Siemens IT Solutions and Services in 2011 and demonstrates our strength in the UK market in infrastructure outsourcing.”

Nigel Pettifer, EDF Energy Head of Data Centres, said: “Throughout the rigorous 12 month procurement process, Atos clearly demonstrated that it had the expertise, capability and capacity to meet our business needs in the UK. The new solution will enable us to run our business more cost effectively while improving the resilience and flexibility of our IT infrastructure.”

Under the new contract, Atos will provide EDF Energy with significant additional data centre capacity to meet increased demand, whilst also enabling its services to be flexed up or down according to requirements. Atos will rationalise the existing data centre facilities and introduce services from its own global network of data centres, as well as implementing new technology solutions to further improve service resilience.

Over 100 employees from EDF Energy are transferring to Atos and will continue to be based at EDF Energy locations. Atos and EDF Energy have worked closely together to ensure a smooth transition for all employees.

Atos is one of the leaders in managed services and cloud computing with 30 major data centres, 900,000 SAP users and management of more than 90,000 servers globally.

Source:  www.top-consultant.com

Panalpina, a leading freight and logistics company, has rolled out the first phase of a finance and accounting (F&A) business process outsourcing (BPO) initiative as part of a seven-year agreement with Accenture signed in October 2010.

Panalpina is working with Accenture to consolidate and standardize finance processes across its global operations, including Purchase to Pay, Order to Cash and Record to Report services. The project aims to deliver consistent processes, uniform technology and a strong control environment for Panalpina’s finance function while achieving significant cost efficiencies.

Accenture first designed the new operating model for Panalpina’s finance function and is now delivering F&A services to the company in 14 languages and in 23 European countries[i], as well as the U.S. and Canada. This represents approximately half of the finance and accounting operations at Panalpina.

“By implementing a financial shared services model, Panalpina is able to achieve significant efficiency improvements,” said Marco Gadola, Panalpina’s CFO. “We chose to work with Accenture because of their proven track record on delivering robust F&A services using the capabilities and flexibility of their global delivery network.”

“Accenture and Panalpina are working to create a world-class finance organization for Panalpina,” said Michael Sturm, a senior executive for Accenture’s Air, Freight & Logistics and Travel Service group. “That means a finance organization that is both efficient and effective – that has consistent processes, uniform technology and a strong control environment to help achieve high performance in a challenging, global marketplace.”

This outsourcing work builds on a strong relationship between the two organizations as Accenture has worked with Panalpina on a number of management consulting projects. Panalpina started the project of optimizing its F&A operations in late 2010 with implementation during the course of 2011. The work is being delivered by teams located on-site at Panalpina and in Accenture Global Delivery Centers the Philippines, the Czech Republic and the United States.

Source:  www.top-consultanct.com

CSC announced that Mike Lawrie will officially begin his post as the company’s president and chief executive officer on March 19, 2012. Lawrie, who has been a member of CSC’s board of directors since February 7, 2012 succeeds Michael W. Laphen, who will retire as the company’s chairman, president and chief executive officer on March 19, 2012.

Rodney F. Chase, a current director on the company’s board is to become non-executive chairman. David Barram, a current director on the company’s board, has been appointed by the board as chairman of the audit committee. Chase and Barram’s appointments are effective March 19, 2012.

“I am eager to begin leading CSC and continuing to engage with our clients, partners and nearly 100,000 employees around the world,” said Lawrie. “There is great potential within CSC to improve operational and financial performance, while continuing to develop and deliver leading edge services and solutions to make our clients’ successful. I look forward to getting started as we build on our heritage, capabilities and client base to achieve the performance and the value CSC is capable of attaining.”

Prior to CSC, Lawrie was chief executive officer of UK-based Misys plc, a leading global IT solutions provider to the financial services industry, from November 2006 to January 2012. Lawrie also served as the executive chairman of Allscripts-Misys Healthcare Solutions, Inc., an industry leader in electronic health record solutions, from October 2008 to August 2010. Prior to that, Lawrie was a general partner with ValueAct Capital, a San Francisco-based private investment firm, from 2005 to 2006. He also served as chief executive officer of Siebel Systems, Inc., the international software and solutions company, from 2004 to 2005. Previously, Lawrie spent 27 years with IBM where he held various leadership positions, including senior vice president and group executive, responsible for sales and distribution of all IBM products and services worldwide; general manager for operations in Europe, the Middle East and Africa; and general manager of Industries for the Asia Pacific. Lawrie is the lead independent, non-executive director of Juniper Networks, Inc., and is also a trustee of Drexel University, Philadelphia. Lawrie holds a B.A. in History from Ohio University and an M.B.A. from Drexel University, Philadelphia.

Source:   www.top-consultant.com

Logica reported saw revenue grow 3% to £3.9 billion for the year ended 31 December 2011.

Adjusted operating profit was down significantly on last year at £114 million, which included the impact of the £132 million of restructuring and contract charges announced on 14 December 2011.

Logica said outsourcing revenue was up 9%, with second half revenue up 7%; consulting and professional services revenue was flat, with second half revenue down 1%. Revenue in the commercial sectors was up 7%, offset by a 3% decline in public sector revenue.

Logica said fourth quarter weakness was seen particularly in the Benelux and Sweden.

Commenting on the results, Andy Green, CEO, said: “2011 was a more difficult year then we had expected. While our order book at £4.6 billion was strong and revenue was up 3%, restructuring and contract charges resulted in a lower adjusted operating profit.

“Building on our successful long-term relationships with clients, we signed significant orders with clients such as Shell and Michelin. We had important wins with new clients such as BAE Systems and the Swedish Pensions Agency.

“The revenue outlook remains uncertain but we are on track in implementing the actions we announced in December. As a result, we expect our Benelux business to return to profit in 2012, our Swedish business to deliver an improved margin and our Outsourcing business to be strongly competitive. Even in tough market conditions, we expect our full year operating margin for 2012 to be above 6.5%.”

Source:  www.top-consultant.com

The Capgemini Group reported total 2011 revenues of €9,693 million, up 11.4% on published revenues (i.e. at current group structure and exchange rates), representing a growth of some 2 points above what the company set at the beginning of the year. On a like-for-like basis, revenues rose 5.6%, with the difference between these two rates primarily due to the consolidation of CPM Braxis (Brazil) and Prosodie (France), acquired in October 2010 and July 2011, respectively.

Bookings during the year totaled €9,903 million, down on last year (-8.4% like-for-like) during which a large number of Outsourcing Services contracts were renewed. Conversely, Technology Services, Local Professional Services and Consulting Services reported 6.2% growth in bookings and a book-to-bill ratio of 1.12, confirming the dynamism of these markets.

The operating margin is up in each of the Group’s four businesses and totals €713 million, or 7.4% of 2011 consolidated revenues, compared to 6.8% in 2010. In line with the objective set by the Group, the operating margin rate for the second-half of 2011 increased one point on the second-half of 2010 to 8.6%. Operating profit increased 21.7% to €595 million.

After a net financial expense of €105 million (compared to €87 million last year) and an income tax expense of €101 million (compared to €124 million last year), Group profit for the year is €404 million, up 44.3% on last year.

Outlook for 2012

Strengthened by investments in recent years, the Group is implementing strategic priorities that enable it to approach 2012 with a certain degree of confidence. The good demand levels witnessed at the end of last year have not weakened at the beginning of 2012 and activity trends remain positive in several major markets including North America.

However, due to reduced visibility and the uncertain macro-economic environment, the Group currently expects to report limited organic growth in revenues (taking account in particular of the public sector cost cuts introduced in the majority of European countries) and an increase in the operating margin rate.

For Paul Hermelin, Chief Executive Officer of Capgemini Group: “Strengthened by its good results, the Group will continue to focus its offering on high value-added services, anticipating in this way the new needs of its customers, and step-up the industrialization of its production model, in order to reinforce its position among global leaders in its business sector.”

Operations by region

France – which retains its number-one spot among the Group’s regions in terms of revenues – saw this latter surge 10.7% on 2010 published figures, that is taking account of the acquisition of Prosodie. Like-for-like growth is 4.9%, thanks to the good performance of Technology Services and Local Professional Services. The operating margin rate for the region increased 2 points on 2010 to 8.7%.

The United Kingdom and Ireland reported like-for-like growth of 2%, despite substantial cost cuts in the public sector. At 7.1%, the operating margin rate fell 0.8 points on 2010.

North America reported marked growth in revenues (+11.5% like-for-like), driven by project and consulting activities. With an operating margin rate of 8.8% – up 3.6 points on 2010 – North America became the Group’s most profitable region.

Benelux remains a difficult market for the sector as a whole, where the Group reported a contraction in revenues (-4.4% like-for-like) and an operating margin rate of 7.4%, down 2.3 points on 2010.

In the other regions, revenue growth (+10.9% on average, like-for-like) was marked by a business recovery in the Nordic countries and improved performance in Central Europe. The average operating margin rate of these regions is 7.9%.

Operations by business

Technology Services enjoyed sustained like-for-like growth of 8.4%, reflected by a high level of recruitment and an operating margin rate of 6.8%, up slightly on 2010. The situation varied across the Group’s regions, with North America reporting a significant increase in profitability while the United Kingdom and Benelux reported downturns;

Outsourcing Services reported like-for-like growth in revenues of 3.0% and an operating margin rate of 7.7%, up 0.6 point on 2010;

Sogeti reported like-for-like growth in revenues of 6.3%, with an operating margin rate (10.9%) up significantly on 2010 (+1.7 points);

Consulting Services, the business most heavily affected by the public sector cost cuts, reported a slight increase in 2011 revenues (+1.2% like-for-like) and even growth of 9.2% in the fourth quarter. The operating margin rate increased over one point to remain – at 12.0% – the highest of the group’s four main businesses.

Headcount

The group recruited nearly 33,000 employees in 2011, including just over half in what Capgemini calls onshore countries.

At December 31, 2011, the total headcount had increased over 10% to 119,707 employees, compared to 108,698 at the end of the prior year. This headcount includes 44,468 offshore employees (including 35,728 in India), representing 37% of the total compared to 35% last year.

Source:  www.top-consultant.com

CSC has been ranked in the top 50 greenest companies in America in the 2011 Newsweek Green Rankings. The company has improved its ranking dramatically each year, and currently stands at No. 36 on the list.

This third annual list provides an environmental ranking of the 500 largest publicly traded companies in America, as measured by revenue, market capitalization and number of employees. CSC’s higher ranking is due in part to the company’s expanded and improved policies, regional collaboration, transparency in reporting, maturity of the corporate responsibility program and integration of sustainability into the business.

“CSC is honoured once again to be recognized by Newsweek as one of America’s greenest companies,” said Susan Pullin, vice president of Corporate Responsibility, CSC. “As our improved ranking shows, we continue to invest in environmental sustainability services and strategic Green initiatives that benefit our clients, our company and the world around us.”

Newsweek’s Green Rankings are based on a company’s overall Green Score, which was derived from three components: Environmental Impact Score (weighted at 45 percent of the total), Environmental Management Score (45 percent) and Disclosure Score (10 percent). Disclosure is a new category added this year to measure company transparency and reporting measures.

Source:  www.top-consultant.com

IT services outsourcer Logica is axing 1,300 jobs in the wake of a profits warning and as the Eurozone crisis deepens.

Logica said the cuts represented around three percent of its workforce. The restructuring, which includes disposing of some property, will cost the firm at least £93 million in one-off charges, in addition to a £39 million charge taken by Logica that is linked to re-evaluating some of its contracts.

The 1,300 job cuts, which are spread across the Benelux region, the UK and Sweden, are expected to eventually save the firm £50-£60 million a year, Logica said. Around 225 jobs are expected to go in the UK.

Logica said “pockets of weakness” it first saw in September “had widened through the quarter”. It now expects full year revenue growth to be around three percent for 2011. Full year results will be announced on 22 February 2012.

Andy Green, Logica CEO, said: “We deeply regret the impact job losses will have on the people affected. But we are confident that it is best for our clients, people and shareholders that we face squarely into the difficult economic conditions ahead. This decisive action will result in sustainable margin improvement in 2012.”

Wednesday’s job cuts announcement comes in a week the government said it was awarding Logica with a framework HR and finance services deal worth up to £500 million.

Source:  www.cio.co.uk