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Capgemini – Next-Gen Testing Services

Vendor Analysis

by Dominique Raviart

published on Jan 24, 2019

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Report Overview:

Until 2016, Capgemini operated in the software testing space through its Global Service Line structure, which grouped and coordinated activities between several Capgemini strategic business units (Application Services One and Application Services Two, Financial Services, and Sogeti).

Under the new structure, Capgemini has moved away from a relatively centrally managed service line to a more SBU-centric approach. With this approach, it acknowledges that organizational demand for large managed testing services contracts has lessened recently, and has shifted to smaller, digital-centric contracts that require more onshore reactivity to respond to bids and other market opportunities. Capgemini also expects SBUs to be in a better position to conduct personnel reskilling locally, than a more centralized structure would have been.

Nevertheless, Capgemini wants to maintain a high level of coordination across its different software testing units, and in 2016 created its Unified Technology Office (UTO). UTO is a center of expertise which has responsibility for:

  • Harmonizing technologies, methodologies, best practices and partnerships with testing ISVs, across the different SBUs of Capgemini Group
  • Setting up TCoEs: both vertical ones (telecom, media and entertainment, financial services, energy and utilities, public sector, automotive, healthcare and life sciences, and high-tech) and technology ones (process, automation, performance engineering, specialized services, digital, and agile/DevOps)
  • Accelerator and platform creation and creating an ecosystem with Silicon Valley-based startups
  • Co-leadership on personnel reskilling with SBUs
  • Marketing
  • Partnership relationships.

UTO is an important element of Capgemini Group's testing activities. It has ~200 dedicated personnel and a budget which is 2% to 2.5% of Capgemini's testing revenues (~€25m). Capgemini's testing activities involve ~19.5k career testers (this does not include 14.5k application engineers with testing capabilities). It has 500 testing clients including ~75 managed testing services clients.

Who is this Report for:

NelsonHall’s Software Testing Vendor Assessment for Capgemini is a comprehensive assessment of Capgemini’s next-gen testing service offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for software testing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the software testing sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of Capgemini’s next-gen testing service offerings, capabilities, and market and financial strength, including:

  • Analysis of the company’s offerings and key service components
  • Revenue estimates
  • Identification of the company’s strategy, emphasis and new developments
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s strengths, weaknesses and outlook.

Key Findings & Highlights:

Until 2016, Capgemini operated in the software testing space through its Global Service Line structure, which grouped and coordinated activities between several Capgemini strategic business units (Application Services One and Application Services Two, Financial Services, and Sogeti).

Under the new structure, Capgemini has moved away from a relatively centrally managed service line to a more SBU-centric approach. With this approach, it acknowledges that organizational demand for large managed testing services contracts has lessened recently, and has shifted to smaller, digital-centric contracts that require more onshore reactivity to respond to bids and other market opportunities. Capgemini also expects SBUs to be in a better position to conduct personnel reskilling locally, than a more centralized structure would have been.

Nevertheless, Capgemini wants to maintain a high level of coordination across its different software testing units, and in 2016 created its Unified Technology Office (UTO). UTO is a center of expertise which has responsibility for:

  • Harmonizing technologies, methodologies, best practices and partnerships with testing ISVs, across the different SBUs of Capgemini Group
  • Setting up TCoEs: both vertical ones (telecom, media and entertainment, financial services, energy and utilities, public sector, automotive, healthcare and life sciences, and high-tech) and technology ones (process, automation, performance engineering, specialized services, digital, and agile/DevOps)
  • Accelerator and platform creation and creating an ecosystem with Silicon Valley-based startups
  • Co-leadership on personnel reskilling with SBUs
  • Marketing
  • Partnership relationships.

UTO is an important element of Capgemini Group's testing activities. It has ~200 dedicated personnel and a budget which is 2% to 2.5% of Capgemini's testing revenues (~€25m). Capgemini's testing activities involve ~19.5k career testers (this does not include 14.5k application engineers with testing capabilities). It has 500 testing clients including ~75 managed testing services clients.

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