By Dan Berthiaume
Judging by the recently released Q1 2012 results of major global outsourcing provider Capgemini, the overall outsourcing market, including BPO as well as consulting services, information technology outsourcing (ITO) and local professional services, is showing signs of generally strong health. Capgemini reported quarterly revenues of about 2.6 billion euros ($3.2 billion USD) during Q1 2012, up 9.2% from published figures of $2.35 billion euros ($2.93 billion USD) in Q1 2011.
Nordics, North America Top Growth Regions
Demand for Capgemini outsourcing in the Nordic countries showed the strongest growth rate (13.1%) of any region, slightly beating the rate in North America (13%) and well ahead of other fast-growing regions such as UK/Ireland (3.9%) and France (1%). Looking at how total revenues break down by region, Capgemini reported France represented the largest share (22.5%), with UK/Ireland (19.9%) and North America (19.7%) virtually tying, and Benelux (Belgium, Luxembourg, Netherlands) contributing 11.6% of total revenues.
Rounding out the total, Southern Europe/Latin America contributed 9.7% of total revenues, with the rapidly growing Nordic countries representing 7% and Germany/Central Europe providing 6.6%. Asia/Pacific contributed the remaining 3%.
Public Sector Accounts for ¼ of Revenues
Breaking its Q1 2012 revenue down by business sector, Capgemini reports that the public sector accounted for almost one-quarter (23%) of total revenue. Financial services (19.8%) and manufacturing (18.1%) followed closely behind, with consumer products/retail/distribution/transportation (14%), energy/utilities/chemicals (11.1%) and telecom/media/entertainment (8.9%) also contributing major portions of total outsourcing revenue for the quarter. Consumer products/retail/distribution/transportation reported the leading sector growth rate of 13.4%, while despite being the sector producing the most revenues, the public sector reported the only negative growth rate (-1.6%).
Headcount Grows Slightly from Q4
Capgemini reported a slight (less than 1%) increase in its headcount at the end of Q1 2012, when its outsourcing headcount totaled 120,542, compared to the end of Q1 2011, when its outsourcing headcount totaled 119,707. The Q1 2012 headcount figure includes 45,131 employees in offshore bases (including 36,204 in India), representing about 37% of 120,542 total employees. Bookings in Q1 2012 totaled 2.14 billion euros ($2.67 billion USD), down from Q1 2011 bookings. However, the book-to-bill ratio for consulting services, technology services and local professional services remained positive: 1.02 for the group as a whole.
ANZ Enters Managed Service Agreement with Capgemini
Continuing Capgemini’s successful record in Q1 2012, Australia and New Zealand Banking Group Limited (ANZ) is entering a managed services relationship with Capgemini. Under the agreement, which is subject to final negotiations and approval, Capgemini will provide ANZ with access to additional specialist experience, best practice processes, systems and tools in testing and environment services. As part of the agreement, ANZ’s IT testing services teams in Melbourne and in Bangalore will transition to Capgemini.
There will be no job losses among permanent employees with approximately 110 permanent staff in Melbourne and 250 permanent staff in Bangalore, being offered comparable roles with Capgemini with comparable entitlements. ANZ will also consolidate testing services provided by over 40 external providers to Capgemini.
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