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Europe's biggest Information technology (IT) service firm Atos Origin aims to quadruple its business in China over the next two years, which it hopes will make a "significant contribution" to doubling the firm's overall Asia-Pacific revenues.
Atos Origin Asia-Pacific Chief Executive Officer K.C. Neoh made this bold prediction after the firm completed the acquisition of its French counterpart SchlumbergerSema.
Neoh believed the completion of the acquisition will help the firm achieve that goal.
Amsterdam-headquartered Atos Origin's annual revenues were around 3 billion euros (US$3.72 billion) before the acquisition, but the new firm's combined annual sales will reach 5 billion euros (US$6.2 billion).
The significance of the deal is even more telling in China.
The acquisition of SchlumbergerSema's business in China will bring its strength in both the finance and high-tech manufacturing sectors to Atos Origin.
SchlumbergerSema had contracts with three of China's four State-owned banks and provided IT services to six Chinese banks' credit card businesses last year - only 10 banks are allowed to conduct this business.
With its progresses in the banking sector, SchlumbergerSema's revenues also grew from virtually nothing to around US$10 million last year.
Atos Origin, which is popular among multinational customers, is also expected to gain more domestic clients, one of SchlumbergerSema's strengths.
Neoh said the future focus of his company will be on the finance, manufacturing and energy sectors.
"The major task is to expand the scale of our business and spread our reputation," he added.
Although Atos Origin is already the world's fifth-largest IT consulting company, it is still less well-known than its US counterparts like IBM, HP and Bearing Point.
Neoh said the expansion will also be achieved by the hiring of more staff at the Chinese branch of his company, but he declined to say how many new employees it will add.
Atos Origin currently has more than 300 staff in China.
But he said the Paris Bourse First Market-listed company will double or even quadruple its employees in the Asia-Pacific region from about 2,500 at present.
Atos Origin is also hoping to acquire some competitors in the Chinese market, and has already found some targets, but the company declined to give more details.
On the other hand, it will improve the revenue structure in the coming years and IT service outsouring has become a priority.
According to Atos Origin North Asia President Ping Lee, system integration is the biggest source of revenue in China, contributing to more than 70 percent of total revenues, while IT services and consulting account for about 20 percent and 5 percent respectively.
But Atos Origin will raise the ratio of IT services to 60 percent worldwide and the Chinese branch should also work toward that goal.
(China Daily March 16, 2004)
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