06 Jul 12
Devoteam strategy to lift margin
French IT consulting group Devoteam is aiming at 10% operating margin by 2015 as it is outlining its new strategic plan.
The new strategy is based on two main pillars and each pillar is focused on three initiatives, the company says.
As far as the growth pillar is concerned, Devoteam will keep its core offers, which includes IT service management, security and risk management, unified communications and telecom networks, and IT transformation. Additionally, it will add new ‘high potential offers’ such as cloud, mobility and data and information management.
While repositioning its offer for the telecommunications clients and network optimisation, the company has identified nine ‘priority deployment’ geographies. This will involve the following countries: France, Spain, Italy, Germany, Belgium, the Netherlands, the UK, Scandinavia and the Middle-East.
Switzerland, Austria, Luxembourg and Czech Republic have been considered as niche markets, while high-growth regions will include Poland, Russia, Northern Africa and Turkey, all of which will be joining the programme in 2013.
As part of the new strategy, Devoteam will also revise its operational efficiency and will focus on three major areas: commercial effectiveness, industralisation of production and resource management as well as rationalisation of support functions and purchasing initiatives, as it says.
Also, the group has updated its revenue estimates for years 2012-2015. It expects revenues for 2012 to stand between €515m and €520m while the operating margin should represent about 4% of revenues.
The company plans to increase its organic growth to 10% in 2015.
“This paradigm shift is a real opportunity for Devoteam, which will enable the Group to achieve a 10% yearly organic growth and a profitability level reaching that of the best players in the industry” says Stanislas de Bentzmann, co-CEO of Devoteam.