Quarterly Update
published on Feb 21, 2017
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Report Overview:
NelsonHall’s Quarterly Update on Capgemini provides a snapshot of developments at Capgemini in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on Capgemini provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector
Scope of this Report:
The report provides a quarterly update on Capgemini, looking at financial performance and key developments during the period.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at Capgemini’s IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
- Q4 Performance:
- Topline momentum of H1 not maintained; headwinds have 2% impact
- North America disappoints.
- IGATE operational integration complete; cost synergies ahead of plan
- Financial targets for 2017 include:
- 3% CC growth
- Operating margin of 11.7-11.9%.
- Priorities include:
- Improving account centricity
- Accelerating organic growth in North America:
- Digital & Cloud. Expect to see more niche acquisitions to enhance digital capabilities
- Revenue synergies from IGATE.
- Slippage in mid-term targets set in 2014/15.
- M&A back on agenda.
- Expanding share buyback program
- Changing legal entity from SA to SE.