Americas

  • United States

Who is Capgemini?

Opinion
Feb 15, 20063 mins
Networking

* Capgemini won big in the GM deal, but who is Capgemini?

Several weeks ago I wrote about the major resourcing going on at General Motors with the impending expiration of a 10-year EDS contract this June. Last week, the winners for half of that work were announced. While EDS retained approximately half of the business awarded, several firms made big strides with GM. One of those was Capgemini, which picked up $560 million in new contracts.

Several weeks ago I wrote about the major resourcing going on at General Motors with the impending expiration of a 10-year EDS contract this June. At the beginning of February, the winners for half of that work were announced. While EDS retained approximately half of the business awarded, several firms made big strides with GM. One of those was Capgemini, which picked up $560 million in new contracts.

Capgemini is a major player in the outsourcing and systems integration business with revenue in the range of $8.5 billion (official announcement of 2005 revenue will be made on Feb. 23). Yet, this is one company that I personally have had very little exposure to in the past. I decided it was time for me to get a closer look, and I want to share that look with you this week and next. My closer look took the form of a briefing with Chris Carrington, president of Americas outsourcing for Capgemini. I am going to break this into two parts, covering an overview of Capgemini this week and sharing Carrington’s thoughts on trends and issues in outsourcing next week.

Capgemini is based in France and has operations in more than 30 countries. Europe and Asia represent 70% of its business with 30% in the Americas. For Capgemini, the Americas is primarily the U.S., Canada and Mexico with some presence in South America. Utilities is the largest industry segment representing $1.7 billion in revenue for Capgemini, but the company touches every major industry segment. The company employs almost 60,000 employees.

Capgemini offers a wide range of services within four key areas of focus: consulting, outsourcing, technology and local professional services.

Outsourcing represents 40% of Capgemini’s revenue and is the largest and fastest growing part of the company. Outsourcing services include applications management, infrastructure management, business process outsourcing (BPO) and transformational outsourcing. Its business-mix differs slightly in Europe and the Americas. In Europe 60% of its business is IT infrastructure-oriented while in the Americas 60% is application development oriented. BPO is centered primarily around finance, accounting and supply chain processes. It also participates in many projects involved in process design, systems implementation, and runs them on an ongoing basis.

Capgemini applies resources to customer projects through 100-plus integrated delivery centers worldwide. Global operations include 4,000 employees in India and 2,000 employees in Eastern Europe. It has been present in China since 1999, employing more than 1,000 employees there. While these resources are widely dispersed, they are trained and managed around common processes and a common corporate culture based on what it calls its Rightshore approach: using the right resources, in the right location, at the right cost. One example Carrington provided was its call center operations in Poland where it has resources capable of doing business in a wide range of languages.

This overview of Capgemini will provide a backdrop to next week’s newsletter where I will share Carrington’s thoughts on trends in outsourcing including:

* The shift from the mega-deal to multi-sourcing.

* The impact of the rising popularity of ITIL on outsourcing.

* The real difference in GM’s new outsourcing model.

* The top three things to think about to get ready to outsource.