2005 Financial Report - Capgemini

20 ANNUAL
THE GROUP
Capgemini
These movements reflect three main trends over the period:
• Increased use of Rightshore TM capabilities, which combine
local resources close to the client with resources which
may be located in specialized production centers based
on a particular technology or service offering.
• Development of Local Professional Services, with a particularly
strong focus on France and the Benelux countries.
• An upturn in business in the United States, which led to
reorganization by region.
Following the trend begun in 2004, 2005 also saw very
strong momentum in recruitment, with nearly 14,500 new
hires. The upsurge in business in 2005 made it possible to
implement “revitalization” programs, meaning that hiring
mainly concerned young graduates, particularly in France,
India, the United States, the United Kingdom, Spain and
the Netherlands. All countries saw growth, but levels were
particularly high in India with an expansion of nearly
83%, and at Sogeti which recruited 4,100 new employees.
REPORT 2005 Capgemini
At the same time, employee turnover – which measures
the percentage of voluntary departures – continued to rise
slightly in 2005, to 15.4% (from 14.1% in 2004), representing
over 9,300 voluntary departures during the year.
This trend reflects the upturn in the IT services market and
the ensuing employee mobility. This turnover rate is carefully
monitored on an ongoing basis and specific programs
have been put in place to ensure that it remains in line
with the rest of the industry. The rate differs depending on
the business line and geographic area. In India, which is
currently a high growth market for IT services, employee
turnover fell by over 11% to settle currently below 20%.
The resource utilization rate, which measures the ratio of
directly billable time to total working time (excluding
vacation), has risen overall in 2005 in the Projects and
Consulting businesses (Consulting, Technology - or Systems
Integration & IT Applications Development - and Local Professional
Services) and can be analyzed as follows:
Quarterly 2004 2005
utilization rate Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Consulting Services 64.2 64.5 62.4 64.7 64.6 68.6 68.0 68.2
Technology Services 74.0 74.8 76.0 76.4 77.8 79.2 79.2 79.1
Local Professional Services 82.7 84.4 85.6 85.6 85.4 86.3 85.9 85.9
The utilization rate is not monitored for the Outsourcing business, for which it does not reflect changes in performance.