Atos SWOT and PESTLE Analysis

Strength

1. Strong Strategic planning: Atos strategy is aligned towards providing the most updated solutions. The company relies on talent, innovation, technology, and partnerships for its growth and profitability. With a strong strategic third plan laid (ATOS has a three year strategic plan), the company ensures the delivery of world-class solutions that enable tangible business benefits to clients in all markets and all sectors. A strong strategy has allowed the company post yearly growth in revenue. The Revenue has grown from 12138 Million Euros to 12691 million Euros in 2017. The cash flow for the company has also increased from 569 Million Euros to million Euros. The company has four main divisions Infrastructure & Data Management, Business & Platform Solutions, Big Data & Cyber security and World line. The maximum revenue was generated from Infrastructure and Data Management which contributed to 56% of the Group’s revenue. Partnerships and digital ecosystem are the two main pillars of growth and profitability for the company.

2. Strong International presence: Atos is present across 73 major countries and has a strong hold in the IT ecosystem across these countries. The company is present across North America, South America, Middle East and Africa, Europe, Asia-Pacific. The maximum business operations are across Central & Eastern Europe as well as Benelux & the Nordics. The Company has 100000 Business technologists working in across 73 countries. With strategic alliances and partnerships, the Company is looking forward to expand to other countries as well. In Public & Health, the growth was driven by North America in the Healthcare sector, and by new projects delivered in Germany. The growth was primarily led by Big Data thanks to HPC activities with large customers in Manufacturing and Energy sectors in France and with the Jülich Research Center in Germany. Cyber Security Services also contributed to this growth, especially in France and in North America, as well as in Central & Eastern Europe with additional businesses in Mission Critical Systems.

3. Strong digital presence: As the impact of new technologies on business and society intensifies, ATOS has played a major role in supporting the customers to anticipate these trends and react to transformational change in business models, ways of working, disruptive technologies and evolving challenges. Atos has seven different technologies to achieve the digital transformation for its customers. Cryptography, Artificial Intelligence, Big Data, 5G, Block chain have been some of these technologies in which ATOS has excelled and supported the customers. In 2017, several initiatives were launched within key parts of the company. In 2018, the Group will deploy more digital tools; reengineer processes through automation, position. The company has a dedicated tool known as “Digital transformation factory” to cater to the digital transformation ambition 2019. Consisting of four end-to-end offerings, the Digital Transformation Factory meets the needs of large organizations to maximize digital opportunities, enhance their competitiveness and increase their growth.

4. Strategic alliances including Mergers and Acquisitions: ATOS has extensively followed an expansion strategy through strategic alliances and partnerships. The Company has already partnered with relationships with Major IT industry players including Siemens, SAP, Dell EMC and Microsoft. To deepen the relationships the Company intends to Leverage the skills and know-how from these partners’ extensive technology portfolios. Atos recently has entered into a global agreement with Google Cloud to address the digital transformation needs of enterprise customers. The company has entered into partnerships with Engage ESM, a UK-based leading provider in the enterprise-service management sector and a ServiceNow Gold Services, with Zdata, a leader in Big Data consulting and solutions for both commercial and enterprise corporations, with MRL Posnet which has a state-of-the-art terminal management platform which processes payment transactions on behalf of 18 Indian banks. Atos recently entered into Health care also by acquiring healthcare consulting companies, Pursuit Healthcare Advisors, Healthcare Provider Consulting, and Breakaway and thus further strengthening the scale and scope of Atos’ healthcare-focused services in its Business & Platform Solutions division. One of the biggest acquisitions in 2018 has been the Syntel acquisition for ATOS for $3.4 billion.

Weakness

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Opportunity

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Threat

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Political

1. Government boost to Cyber Security: The French State is working to ensure the security of IT systems to move towards a collective response, towards the digital trust required for the stability of the State, economic development and the protection of citizens. The authority is a genuine “fire fighter” of French cyber space; it is responsible for preventing (including from a normative perspective) and reacting to IT incidents regarding sensitive institutions. This shows that government has been inclined towards having a strong cyber security which provides a great opportunity for companies like ATOS.

2. Boost of R&D for CyberSecurity space in Europe: The ambitious public-private partnership contract on cyber security launched by the Commission is to promote R&D in the field of cyber security across Europe. In addition, the EU’s digital single market will also be achieved by its ability to put the next technological revolutions at the forefront in the field of digital technology. This is why the President of the French Republic called for the creation of a European “DARPA”, an agency for the financing of disruptive technology.

3. Brexit May hamper employment in Europe: Brexit means the UK is no longer part of Europol which makes Brexit pose challenges for the cyber security industry in grounds of fear of skill shortages. A recent research report by Capgemini’s Digital Transformation Institute has highlighted an urgent and growing cyber security talent gap. With UK sharing along with India having 16% of talent pool in the cyber security space, Brexit may pose a threat to cyber security industry in EU. Demand is set to grow, with 72% of respondents predicting high demand for cyber security in 2020. Brexit is clearly having an impact on the UK’s attractiveness as a place to work for skilled EU workers, exacerbating talent shortages, according to experts speaking at the TEISS summit.

Economic

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Social

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Technological

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Legal

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Environmental

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