Capgemini H1 - not so good in UK

Capgemini has also come up with some pretty 'solid' results for H1 and Q2. Organic growth at constant currency was 5.3% in H1 (Euro4.37b). Of course, unlike its US competitors, the results at current exchange rates are rather different - minus 0.5%. Capgemini UK produced the lowest growth (+1.5%) "to compensate for the programmed drop in revenues from HMRC".

Interestingly it was Local Professional Services via Sogeti (what was called 'body-shopping' for most of my time and was the original bedrock of Capgemini) which recorded the highest growth rate (+11.5%) . conversely, outsourcing was the worst performer - up just 3.2% (although HMRC had an adverse affect here). This rather goes against Holway's gut feelings that the ITSA-type revenues are being hard hit but outsourcing is benefitting from the econimic environment.

Capgemini is now forecasting overall revenue growth between 4% and 5% for 2008.