IT Services and security are behind the push; will grow by acquisition as well
European integrator Devoteam says it wants to scale up to €1bn revenue in 2020. 2016 revenue is expected to come in at €555m with 8.5% operating margin. It wants more of the same in business terms. Social Mobile Analytics Cloud Security (SMACS) is experiencing strong momentum, it says and is expected to almost double to 30% of the IT services market in 2020, says Gartner. Taking advantage of this dynamic market, Devoteam is making SMACS its major activity by focusing its portfolio on 6 offers, deployed on two waves:
• First wave: Digital Workplace, Agile IT Platform and CyberSecurity;
• Second wave: Business Process Excellence, Data as a Service and Digital Experience.
Co-founder Stanislas de Bentzmann (above) says: “Proximity and agility have enabled us to become a major player in management and innovative technology consulting, in Europe and in the Middle East. The Group is in a favourable position to carry out its ambitious development, focusing our energy and investments on targeted offers, in the countries where we are already present, closest to major Cloud publishers. The strong entrepreneurial spirit that drives our teams must remain a fundamental pillar of Devoteam, and we reinforce it with more synergies at the Group level.”
Web giants and global publishers compete in the Cloud market and invest massively in new technologies, stimulating the pace of adoption by customers, it says. In this context, Devoteam wishes to strengthen its strategic partnerships with five worldwide players: three global (Google, Red Hat, ServiceNow) and two multi-local partnerships (Salesforce and Microsoft).
As companies seek more proximity and agility, the Group retains its multi-local positioning supported by management. Devoteam is concentrating its investments on four priority geographic hubs – France, Germany, Spain and Belgium - which will foster the Group's growth and margins.
The Group plans to achieve:
* 7 to 10% average annual organic growth (excluding Between) between 2016 and 2020;
* Continuous improvement of the operating margin (in percentage of revenue) to reach at least 10% in 2020;
* Double digit average annual growth over the period of fully diluted earnings per share;
* Normative level of free cash flow around 5% of revenues.
In addition to these organic objectives, the Group is committed to growing by acquisition which should contribute at least €200 million to 2020 consolidated revenues, without impacting the Group’s ambitions of operating margin rate.
As a result of the strategic initiatives, the Group plans to be in a position to achieve revenues of €1 billion by 2020.