I am not an Oracle guy, but because you ask for recommendation - may be it is time to upgrade to AIX 7.2? or 7.3? And afair Oracle has a newer version too. Something like 19c.
Everything else very relative to your system. What is "high context switching"? Do you have any numbers? How is your server dimensioned? Is it SPLPAR or dedicated? How many CPUs and RAM does it have? Is SMT on or off? There are so many settings which can change Oracle behaviour on AIX that I don't really know where to start ;-)
What I can say, if pi/po in vmstat (I don't know OSwatcher) constantly show 0, it is a good sign. fr/sr I'd say normal operations of LRUD and if you see it on top or not, doesn't really matter.
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Andrey Klyachkin
https://www.power-devops.com------------------------------