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| | elements of Origin, KPMG and the Sema Group via Schlumberger) has finally settled down. Brown sees the main competition for his firm as coming from the “IT-led” sector comprising such players as IBM, Capgemini and Accenture, but with increasing competition from the resurgent “Big Four” accounting brands.
“There’ll be numbers of people rejoining the Big Four;” he says “the growth of the big 4 will be the “next big thing” in consultancy over the next 6 months. The reason for that is that while consultancy related to BPO and IT outsourcing is growing, so too is consultancy related to compliance, and both of those are areas that we are competing in.”
While the “IT-led” and “Big Four” firms may be going toe-to-toe in terms of brand, quality and end-to-end capability, Brown also sees complementary areas.
“It takes many years to build up capability, over the next three to four years it will make sense for the Big Four — excepting Deloitte of course — to partner for IT and outsourcing | |
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| | capability,” he says. “We are talking to a couple of audit companies to see if we can partner with them to add capability, particularly in the area of tax advice”
Brown believes that as clients get used to employing multidisciplinary consortia of consultants, programme management will become a key consultancy skill - as indeed we have already seen in projects such as the NHS national IT programme.
For Brown one of the keys to success in the future will be focus.
“We are really, really working hard to get across exactly what we represent,” he says. “You have to define exactly what it is you do — if you try to re-establish a generalist consultancy or a bodyshop, you’ll be funneled into the low-cost, 'pricefighter' bracket.”
As part of this drive, Atos has redefined its service offerings:
“We’ve renewed our solution-set into what we call 'second wave solutions': more refined, hard-hitting, specific solutions | |
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| | linked to the overall business of cost reduction and customer revenue,” he says, citing Atos’ appointment as Vodafone’s mobility partner as an example of this second generation of consulting solutions in action.
Other strengths for Atos include supply chain work, which has nearly doubled since last year, and also a renewed interest in shared services “A lot of the work is going to Eastern Europe,” he says. “People are combining the offshore principle with shared services.”
Brown is also keen to exploit Atos’ ongoing relationship with the Olympic Games, now extended to the London 2012 event. The firm has invested heavily in training and staff development over the last year and part of this process will involve exposing its programme managers to the highly demanding Olympics work; Atos is also drawing on its systems integration and BPO strengths to grow a technical consultancy business based on its business consultancy model, and to extend its BPO and IT outsourcing | |
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| | skills into more back office BPO.
As far as the general prospect for the economy and consultancy, Brown’s favourite indicator is the advertising industry: “When I see a dip in advertising I know spend consultancy is second on the list — they’re at the edge of the curve”.
Otherwise he will be anxiously waiting with the rest of us to see if the chancellor can balance his books, and if not whether this will lead to a rise in taxes or public spending cuts.
“The consultancy market in the UK is very heavily driven by the public sector expenditure,” he says. “We just have to wait and see what happens in the budget.”
The buoyancy shown by Atos is encouraging, not just because it indicates that money is once again flowing into the consultancy coffers, but because it indicates an industry which is not just becoming more competitive and focused but also more creative in responsive to the many needs of its clients. | |
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| | By Mick James
With more than a few question marks hanging over the economy, any signs that recovery in the consulting industry is robust are certainly welcome. So a good set of half-year figures from Atos Origin — showing group figures up by 8.1% (allowing for disposals and fluctuating exchange rates) — is encouraging.
Even more encouraging is the performance of Atos Consulting within the group, with revenues up 13.5%.
“The consultancy industry is growing about 4% per annum on average,” says Atos executive vice president Bernard Brown, who heads the consulting practice. “So we’re taking other people’s market share.”
Combined with a return to form by Capgemini, the Atos Consulting results suggest that the turbulence caused by regrouping and consolidation in the consulting industry (which in the case of Atos brought together | |
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