BWI: In Line with its Objectives, Capgemini Regains Growth in the Third Quarter 2010

Press release from Business Wire India
Source: Capgemini India Private Limited
Thursday, November 04, 2010 05:36 PM IST (12:06 PM GMT)
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In Line with its Objectives, Capgemini Regains Growth in the Third Quarter 2010


Mumbai, Maharashtra, India, Thursday, November 04, 2010 -- (Business Wire India) -- Capgemini Group reported consolidated revenues of ?2,105 million for the third quarter 2010, which, compared to the same quarter of 2009, shows growth of 8.2% on a reported basis and 2.5% on a like-for-like basis (constant Group structure and exchange rates).

On a like-for-like basis (constant Group structure and exchange rates), Group revenues reflect the following changes compared to the third quarter 2009:

 by business, the cyclical businesses (Technology Services, Consulting Services and Local Professional Services) reported steady revenue growth. Technology Services revenues increased by 7.9% - driven mainly by the excellent performance of Financial Services. Those generated by Local Professional Services rose by 4.2%. Consulting Services revenues slightly declined (-4.1%), but to a lesser extent than in the second quarter 2010. Outsourcing Services reported a slight 2.8% downturn in revenues that was fully attributable to the already mentioned decrease in the volume of revenues generated in two major contracts.

 by region, North America revenues remained stable (+0.1%) on a like-for-like basis. The excellent performance of Financial Services, whose revenues surged by over 40% compared to the third quarter 2009, offset the slump in Outsourcing Services that was mainly due to the already mentioned termination of a major contract. United Kingdom and Ireland reported 3% revenue growth due to the boost in Outsourcing and Technology Services and despite the renegotiation of the Group's volume of business in the UK public sector. France revenues remained stable (+0.1%). Benelux reported a slight drop (-2.3%). All the Group's other regions reported 11.4% growth, with a turnaround in business, particularly in Nordic countries (+6.7%), Central Europe (+7.2%) and Southern Europe and Latin America (+11%).

Bookings in the third quarter 2010 totaled ?2,176 million, up 14.6% compared to the third quarter 2009. They were particularly high in Outsourcing Services, with the continued early renewal of several major contracts that was already observed in the first half 2010. The book-to-bill ratio of the three other businesses (Consulting Services, Technology Services and Local Professional Services) was 0.99 (in line with what is usually expected for a third quarter).

Based on an active recruitment policy, the Group welcomed 9,500 new employees in the third quarter 2010, bringing the total headcount to 100,856 as of September 30, 2010. To be added to this figure are the 5,700 employees of CPM Braxis - the local Brazilian IT services player which was acquired in early October. With 63,850 employees, the headcount in the Group's onshore countries rose slightly (+2.0%) compared to December 31, 2009. The offshore headcount represents 37% of the total headcount as of September 30, 2010.

In line with this sound performance, Capgemini has confirmed its objectives of achieving revenue growth of 3% to 5% (on a like-for-like basis) for the second half 2010 compared to the second half 2009 and a full-year operating margin rate over 6.5%.

For Paul Hermelin, Chief Executive Officer of Capgemini Group: "As predicted, we have regained growth in the third quarter and some of our industries - such as Financial Services - have reported excellent results. We have pursued our recruitment policy to satisfy the demand of clients in the market's most buoyant segments. Finally, with the recent acquisition of CPM Braxis in Brazil, we have strengthened our positions in a rapidly expanding market."

Salil Parekh, Executive Chairman, Capgemini India said, "The results are in line with our expectations. With India playing a significant role in the global delivery and continuing to be a hub for innovation for the Group, the recruitment momentum in India will continue. We will be close to the milestone headcount of 30,000 employees in India by the end of the year. As a result, there will be announcements of facility and campus expansions as well. Our Indian domestic business too is notching up clients, a strong indication of our success in the Indian market."


About Capgemini

Capgemini, one of the world's foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business ExperienceTM. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 35 countries, Capgemini reported 2009 global revenues of EUR 8.4 billion and employs over 100,000 people worldwide.

More information is available at www.capgemini.com.

About Capgemini India

Capgemini in India is over 28,000 people strong across 7 cities (Mumbai, Bangalore, Hyderabad, Kolkata, Chennai, Pune and Delhi). A pioneer in the IT industry, Capgemini has over 40 years of global expertise collaborating with leading corporations and now brings the Consulting, Technology and Outsourcing experience to India. With dedicated teams to service the local markets, Capgemini has strong domain experience to assist clients across the Government and Public Sector, Energy and Utilities, Manufacturing, Telecom and Financial Services sectors and help them advance in their respective industries.

Please visit www.in.capgemini.com for more details.

To view the consolidated revenue table kindly click on
Capgemini Q3 results




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http://www.BusinessWireIndia.com/attachments/Capgemini Q3 results- India.pdf
Capgemini Q3 results- India.pdf


CONTACT DETAILS
Merrin Netto John, Capgemini India Private Limited, +91 9820299325, merrin.netto-john@capgemini.com

KEYWORDS
CONSUMER, CONSULTANCY SERVICES, MARKETING, BANKING, BUSINESS SERVICES, ENERGY, Financial Analyst, IT, STOCK EXCHANGES, TELECOMMUNICATIONS, TECHNOLOGY

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