(By Anthony Miller). It was virtually Capgemini CEO, Paul Hamelin’s opening statement in the company’s FY08 results concall this morning, and it was a theme echoed throughout the presentation. Capgemini now has over 20,000 employees in India (+21% yoy), the lion’s share of its 25K-ish offshore headcount. Highest offshore growth (+37%) was in Poland, where Capgemini now has over 3,000 staff. Indeed, over 40% of its 22,500 new hires last year were offshore, helping to bring group average remuneration costs down 4.5% (currency adjusted). This was in spite of 9% (local currency) offshore salary increases and 4% onshore. Outside of Consulting and the Sogeti bodyshop operation, 36% of Capgemini’s effort was delivered offshore; this should rise to over 40% this year. Offshore mix reached nearly 80% in Financial Services (thanks to Indian SI, Kanbay, acquired in 2005) but even in Southern Europe, Cap’s SI business reached 10% offshore content. By the way, group margins grew 110 bps to 8.5%. Get it? Got it! Good!!
Now, onto the UK. FY08 revenues (including Ireland) were just under flat in constant currency (ccy) terms, at €1.92bn. However, surprisingly, revenues grew 1% yoy ccy in Q4, though were 2% down compared to Q3. Revenues from the all-important Aspire contract fell 8% last year though are expected to be broadly flat this year. UK margins rose from 6.8% to 7.8%, ahead of France (7.3%) and North America (5.8%) but way behind Benelux (14.2%) and Germany/Central Europe (14.0%), which have a higher proportion of bodyshopping.
There’s lots more to go through and I may well update this later.