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UK at risk in competition stakes
 
 According to Trading
Places, a Deloitte
report published last
month, the UK is ranked
sixth amongst 25 world
economies as the most
competitive place in the
world to do business,
but this position is
projected to slide to
12th if Government and
business don’t take
action now.
   The Deloitte
Competitiveness Index
(DCI) is a new ranking
based on key drivers of
wealth creation –
innovation, enterprise,
investment and
macroeconomic data. The
report includes a survey
 
 of 300 UK business
leaders who provide
their perspective on the
UK’s business
environment today as
well as predictions for
the future.
   Currently, the index
ranks the UK among the
top five countries when
measured on
macroeconomic stability
and enterprise, however
on skills, innovation
and tax/regulation, the
UK is significantly
lower in the rankings.
The index also provides
future predictions
assuming a continuation
of trends and this is
where the UK faces
 
 challenges, potentially
dropping out of the top
10 by 2010.
   Deloitte partner
David Owen said: “The UK
is at a critical point
in its evolution as a
centre for global
business and its
challenge is to turn
accelerating
globalisation into
competitive advantage.
Business leaders will
need to ensure that the
opportunities of a
global market are taken,
whether it is through
reshaping business
processes or building
capabilities to evaluate
constantly their network
 
 operations globally.
   “For its part
Government must
concentrate on further
policy reforms to ensure
they remain in line with
the world’s best
practices.”
   Further report
analysis shows that the
US is at the top of the
league table with a
strong performance
across all sectors. It
invests 3.2% of its GDP
in R&D, giving it a
particular strength in
this area. Nordic
countries Sweden,
Finland and Denmark
followed closely with
strength in innovation
 
 and investment, while
Germany’s ranking at
fifth was due to its
strong innovation base,
enterprise and
investment environment.
   In emerging
countries, South Korea
is the front runner: it
is ranked at 13,
followed by India at 22
and China at 24. These
countries are all
expected to climb the
ladder creating a
tougher trading
environment for
continental Europe.
  
  
 
 
Atos Origin grows revenue in third quarter
 
 Atos Origin said
unaudited revenues for
the three months ended
30 September 2005
amounted to EUR 1,293m,
representing a 9.4%
increase on a constant
scope and exchange rate
basis.
   Group revenues for
the seasonally low-key
third quarter ended 30
September 2005 were EUR
1,293m, compared with
EUR 1,253m for the
equivalent period last
year.
 
    Atos Origin has
adopted International
Financial Reporting
Standards (IFRS) with
effect from 1 January
2005. The comparative
pro forma revenues of
the combined Group in Q3
2004 were EUR 1,242m and
on that basis the 2005
figures were 4.1%
higher. After adjusting
for business disposals
during the past 12
months and at constant
exchange rates, Atos
achieved organic growth
 
 of 9.4%. This is the
fifth quarter-on-quarter
increase in succession.
   The three main
service lines each
recorded strong growth
compared with the same
quarter last year. In
consulting there was a
12.2% organic revenue
increase in the third
quarter.
   Revenues in systems
integration were 8.6%
higher organically in
the third quarter, which
extends the upward trend
 
 seen in the second half
of 2004 and in 2005 to
date. The growth in Q3
was mainly due to better
volumes and at the same
time the Group has
increased the amount of
recurring revenues in
this segment from
application life cycle
management contracts.
   Organic revenue
growth in managed
operations was 9.7%,
reflecting the steady
inflow of orders that
has accumulated during
 
 the past year, including
the extended partnership
with Euronext.Liffe
since July.
   Atos Origin expects
organic growth in 2005
to be slightly below 8%,
with an operating margin
slightly higher than
7.5%. The company
remains confident of
achieving the EUR 200m
net debt target by the
end of December 2005.
  
 
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