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Capgemini Looks to U.S. for Makeover as it Prepares for 50th
May 23, 2016, by Rachael StormonthNext year will mark Capgemini’s 50th anniversary, and it is looking to its U.S. operations to spearhead a reinvention as a next generation IT and business process services provider, one where it positions as an innovator that is bold and capable of acting at speed in helping clients optimize and disrupt the way they do business. This is reflected in an aspirational statement for th[...]
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M&A Activity (Part 3): Further Scale and Digital Remain Priorities in 2016
Mar 31, 2016, by Dominique RaviartIn December 2015, we published two blogs about M&A activity in the IT services industry in 2015 (here are the links for Part 1 and Part 2). This blog examines M&A activity in IT services in Q1 2016 and sets our expectations for the rest of this year. In short, 2016 started off with a bang, with two very large IT services acquisitions announced in the first [...]
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Internet of Things: Connected Vehicle Market Driving Towards $1.5Bn by 2020
Feb 24, 2016, by Mike SmartThis is the first in a series of blogs looking at various aspects of the Internet of Things (IoT) market. Here I take a look at the use of IoT in the connected vehicle space, and at the shape of market potential. IoT can be used to build connected vehicle systems to enable: Vehicle-to-vehicle communication so that vehicles can update each other on road conditions, allow vehicles to proper[...]
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M&A Activity in 2015 (Part 1): $10bn to $15bn IT Services Vendors Drive Activity
Jan 04, 2016, by Dominique RaviartReflecting slightly improved macro-economic conditions, 2015 was an active year for M&A activity in the IT services industry. The largest acquisition - for some years - was that of IGATE by Capgemini. And there was a large number of small to mid-sized transactions. When analyzing this active M&A activity, several findings are striking: In spite of all the intensive discu[...]
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Capgemini’s Product Engineering Testing Business Prioritizes Portfolio Expansion and IoT
Oct 14, 2015, by Dominique RaviartCapgemini Group recently briefed on its R&D services/product engineering testing capabilities in its Sogeti High Tech subsidiary. Background Sogeti High Tech (SHT) is a subsidiary of Sogeti (itself a subsidiary of Capgemini). It provides product engineering services (PES)/R&D services. The company has a background in servicing key aeronautic sector clients. The company has expanded i[...]
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Capgemini Rebrands Analytics & Big Data Practice, Announces 'Insights-as-a-Service'
May 05, 2015, by Dominique RaviartCapgemini recently briefed NelsonHall on changes in its analytics and big data practice. The company has recently rebranded its business information management (BIM) global service line (GSL) as Insights & Data (I&D) and announced the availability in H2 2015 of its analytics platform, ‘Insights-as-a-Service’. Background In 2010 Capgemini created BIM as a GSL which, in Cap[...]
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Capgemini's iGATE Deal Capitalizes on Key Market Drivers in Operations Services and Financial Services
Apr 28, 2015, by Andy EfstathiouCapgemini announced today its intention to acquire IGATE. Capgemini is offering $48 per share, or $4.04bn, a premium of ~5% over current IGATE share price. IGATE had debt at end 2014 of $686m and cash on hand of $192m. This offer gives IGATE an enterprise value of ~$4.53bn. Capgemini is thus paying a massive 15.5 x 2014 earnings ($292m) and nearly 3.6 x 2014 revenues. The acquisition [...]
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Capgemini’s Testing Practice Continues Development of IPs, Increases Focus on Cross-Client Delivery
Apr 13, 2015, by Dominique RaviartNelsonHall recently spent two weeks in India, focusing on latest developments in software testing and digital transformation services. We met with Capgemini Group’s Testing Global Service Line (TGSL), the group’s software testing practice (across Capgemini and Sogeti) and discussed key topics including its push towards cross-client shared service centers, and IP development (with the r[...]
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NelsonHall BPO Index Shows Continuing Upturn in BPO Contract Activity in Q1 2015
Apr 08, 2015, by John WillmottBPO contract TCV in Q1 2015 continued the improvement in contract activity seen in Q4 2014, with BPO TCV picking up and gaining momentum over the past two quarters following relatively low levels of BPO TCV awarded in Q2 and Q3 2014. In particular, Q4 2014 showed a 6% improvement in BPO TCV year-on-year, with BPO accounting for 31% of total outsourcing TCV. Q1 2015 BPO TCV performance then impr[...]
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NelsonHall Remains Cautious about ITO Spending in 2015 Despite 40% Increase in Q1 Bookings
Apr 08, 2015, by Dominique RaviartThis week NelsonHall held its quarterly IT Outsourcing (ITO) Index webcast to report on the latest developments in ITO contract activity and present an analysis of spending activity for IT services, professional services (i.e. consulting and systems integration) and ITO. Background ITO Index data shows a steady (but non-linear) decline in Total Contract Value (TCV) from 2002 onwards. The lev[...]
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Capgemini Looks for New Logo Growth in North America, Now its Largest Market
Mar 02, 2015, by Andy EfstathiouIn Capgemini’s recent North America analyst conference, the company provided a compelling description of how its approach in North America has developed recently, together with examples of how this has succeeded, and shared its vision and a roadmap for the next few years. Confidence about prospects for 2015 is high. Capgemini’s 2014 revenues in North America were €2,230m, a gro[...]
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Capgemini: Strong End to 2014, Enters 2015 with Momentum; Looking for Inorganic Growth in U.S.
Feb 23, 2015, by Rachael StormonthCapgemini’s CEO Paul Hermelin describes himself as “very encouraged” by 2014 results; the group has exceeded guidance for: Topline growth: guided on 2-4% organic, delivered 3.4%, accelerating to 5.5% in Q4 Net margin, guided on 0.3 to 0.5 pts improvement, delivered 0.7 pts to 9.2%. Capgemini should read 10% margin by early 2016 Organic FCF: guided at above €55[...]
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NelsonHall Launches NEAT Vendor Evaluation and Assessment Tool for Application Outsourcing
Jan 14, 2015, by Dominique RaviartNelsonHall, the leading global BPO and IT outsourcing analyst firm, has today launched a new tool to assist strategic sourcing managers in assessing vendor capability in Application Outsourcing (AO) services. This NelsonHall Vendor Evaluation and Assessment Tool (NEAT) is now available to NelsonHall clients, and is also available for a period free-of-charge to buy-side organizations through Nel[...]
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European IT Services Majors Deliver on Margin Improvements in H1; H2 Margins Will Be Impacted by Consolidation
Aug 05, 2014, by Rachael StormonthThe H1 results from the European majors Atos, Capgemini, Sopra, all France-headquartered, are now in - also those of Sopra, about to merge with Steria. So what does this tell us, about the progress of these firms and the state of the European market and what should we expect in H2 2014? The average constant currency revenue growth experienced by these firms in H1 2014 was 1.4% with Steria and S[...]
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MPHRO Supplier Focus on the Core Reflected In NEAT CSAT
Aug 04, 2014, by Gary BragarIn addition to providing assessments of MPHRO vendor capability, the NelsonHall Evaluation and Assessment Tool (NEAT) for MPHRO, published July 29, 2014, http://bit.ly/1uDunOq supports an analysis of customer satisfaction within MPHRO by service line. Based on client interviews conducted globally covering vendors providing MPHRO across all regions, the analysis covers satisfaction within the [...]
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Capgemini Points to 5%-7% Organic Growth in Mid-Term
May 23, 2014, by Dominique RaviartCapgemini held its 2014 investor and analyst day this week. For the first time since the beginning of the 2008-2013 crisis, the company has talked about organic growth, a significant development on its focus in recent years on margin improvement. Capgemini’s guidance for 2014 is organic revenue growth of 2% to 4%. The company has now shared a mid-term target of 5% to 7% organic growth. This [...]
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Capgemini Launches Global Engineering Services Offering To Rejuvenate R&D Services Offerings
Jan 21, 2014, by Dominique RaviartCapgemini Group together with its subsidiary Sogeti has launched a new offering, Global Engineering Services (GES), a product engineering/R&D services offering. The new offering focuses on four main services: mechanical engineering, embedded systems, PLM software-related services and technical documentation. Capgemini's capabilities in PES/R&D services were consoderably e[...]
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Capgemini North America Earns its Stripes
Jan 17, 2014, by Andy EfstathiouCapgemini’s Q3 2013 results marked a milestone: North America overtook France as the company’s largest region, contributing ~21% of its total revenues. If we go back a few years, North America was the company’s most troubled region. But over the last two years, it has been one of Capgemini’s fastest growing regions. The company has ambitious plans to grow its North America [...]
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Capgemini Looks to Accelerate LatAm Business in 2014
Dec 16, 2013, by Rachael StormonthNelsonHall recently attended an event hosted by Capgemini Brazil. We were keen to find out about developments in the three and a half years since Capgemini acquired a 61% stake in CPM Braxis, at the time something of a scoop. The acquired capability provided Capgemini with a significant presence in the attractive domestic market of Brazil. But it was dilutive on margins, and management expected th[...]
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Capgemini BPO in Brazil: Location Strategy and Portfolio Development Support Growth Ambitions
Dec 12, 2013, by Rachael StormonthNelsonHall recently visited the Capgemini BPO center in Campinas, Brazil, about 100 kilometers to the northwest of the city of São Paulo. Capgemini’s Campinas center is part of a network of BPO centers in Latin America, the others being in Guatemala City; Santiago, Chile; and, most recently, Blumenau, also in Brazil. We had had the privilege several years before to visit the Guatemala[...]
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