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French outsourcer Atos fattens revenues on UK public sector
UK government biz buoys otherwise flat sales
French outsourcer Atos posted bumper profits int its first quarter, mainly buoyed by the UK public sector deals. Revenue rose 17.6 per cent to €2.4bn (£1.7bn), compared with the same quarter last year.
The UK was the biggest market for the outsourcer, growing 15 per cent to €511m (£367m) compared with the same quarter last year.
Growth was led by a number of major business process outsourcing (BPO) contracts, mostly in the public sector, said the company.
The UK was one of the few markets to see growth and the only region to record a double-digit increase in sales.
Anthony Miller, analyst at TechMarketView, said the firm's "outstanding performance" was attributed to managed services and especially BPO.
"[This is] just as well as Atos' [net] worldwide IT Services revenues (organic) stood stock still at €2.15bn," he said. Managed Services revenue rose 15.5 per cent to €1.24bn (£889m) compared with the previous year.
Thierry Breton, chairman of Atos, claimed the firm's investments in digital were beginning to pay off.
He said: "Indeed, revenue in cloud, big data, and cyber-security represented 10 per cent of the total revenue in Q1 with a double-digit growth rate."
Last month Atos began its contract with Transport for London to run its main service desk.
In December Atos snapped up Xerox's outsourcing biz for $1.05bn (£670m). The group said it expects to complete the second quarter of 2015. ®