Atos to increase India presence post Xerox's ITO business acquisition
It will also increase its India headcount from the current 10,000
Atos might have to pay an additional $50million subject, to the condition of certain assets at closing.
Atos gets a business that has almost 90 per cent of its revenue coming from North America. The acquisition and revenue of $1.7 billion will make Atos one of the largest operating groups. Its US share of revenue will go up from six per cent to 17 per cent. The revenue for Xerox’s ITO business for 2014 is expected to be around $1.5 billion.
Atos will also take over Xerox’s ITO employees in the US (4,500), including employees in offshore destinations India, Philippines & Mexico (3,800) and another 570 in the UK and Germany.
For several European companies such as Atos, diversifying into other regions has become essential. Accenture and Capgemini are the other two European entities which have done a better work of diversifying into non-European markets.
"This acquisition will expand out base worldwide as we get Xerox"s clients in the US and their subsidiaries in Europe. This will also significantly boost our offshore footprint in countries such as India, Philippines and Mexico," said Thierry Berton, chairman & CEO, Atos. The company also becomes one of the primary IT services provider for Xerox.
Both companies have also teamed up on joint innovation projects and would jointly go to market in order to maximize IT services opportunities for Atos and BPO opportunities for Xerox in Europe and North America. The aim of the collaboration is to accelerate growth and innovation, to generate incremental beneficial business for both companies and to better serve their customers both in the US and in Europe.