The current presence of Atos in Switzerland

The split

Effective from July 1, 2023, Atos has split into two publicly listed companies, Eviden and Atos, to accommodate the different dynamics within its business lines: on the one hand, the growing digital applications and security-driven market and, on the other hand, the shrinking infrastructure-driven, asset-led market.

In Switzerland, most of the (old) Atos business mix is derived from the Digital and BDS business lines, thus making up a great share of Eviden’s business. That is also why the remaining Tech Foundations business line was spun off and is being continued under the Atos brand.

Eviden – local opportunities and challenges

In our view, Eviden’s vertical focus is clearly set: the Swiss MEM industry (machinery, electrical, and metal industry) and the Swiss public sector (Swiss government and healthcare). However, while in our view, there is clear potential for Eviden to grow in Switzerland, it will not be easy. In the Swiss public sector, there are already several local specialists that will be direct competitors (e.g., ELCA). The IT market in the Swiss manufacturing industry is also fiercely competitive as – in addition to local providers – Eviden also faces many Indian-heritage competitors, such as TCS and Wipro, with vast offshore delivery capabilities and a growing local presence.

Moreover, the company has split and the new Eviden brand may initially be confusing for some customers, especially in cases where Eviden and Atos maintain those few shared accounts. There is also the risk that Eviden might spend too much time on internal organizational challenges, rather than focusing on its customers’ needs. This concern is particularly relevant because Eviden in Switzerland has emerged partly from acquisitions (e.g., SEC Consult, Cloudreach).

On the other hand, Eviden’s nearshore capabilities in Germany should not be underestimated. In areas where local expertise still has room for improvement (e.g., consulting on cloud topics), German employees are invaluable. Language, for example, is something that connects the two countries.

Lastly, through the split, Eviden gets the opportunity to “reinvent itself” and explore innovative business areas and topics without any burdens from the past. In a nutshell, there are exciting times ahead for Eviden in Switzerland and elsewhere. We are looking forward to the developments in FY2023