CONTENTS - Capgemini

16 ANNUAL
THE GROUP
Capgemini
The above evolution reflects the following:
The continuing adaptation of our production capacity to the
Rightshore TM model, combining local resources (in the client’s
area) with those situated in specialized production centers, the
balance depending on the technology or offer concerned. This
explains, in particular, the development of our headcount in
the Asia-Pacific region - where 12% of Group resources are
concentrated - and in Central Europe;
The continuing development of the local professional services
activity, with strong representation in France and in Benelux,
and a growth trend in North America;
The maintaining of a local production workforce in all our
geographic zones.
In 2006, recruitment was stepped up and 18,600 new employees
came onboard, compared with 14,500 in 2005. This same trend
was prevalent in all countries and in all areas, a trend which was
particularly marked in India where the headcount rose by 77%
REPORT 2006 Capgemini
and the total number of new recruits was higher than the total
headcount at the beginning of the year. Sogeti and OS recorded
high recruitment rates - 4,300 and 3,700 respectively. To support
our 2006 priority on recruitment for growth, a new global
recruitment campaign was launched. This campaign received the
2006 Award for the best global press recruitment campaign.
Staff turnover (i.e. percentage of voluntary departures) slightly
increased - reaching 16.6% in 2006 (compared with 15.4% in
2005 and 14.1% in 2004) i.e. almost 10,700 voluntary departures
during the year - which reflects the standard phenomenon i.e.
increased mobility in Consulting and Services when the market is
flourishing. This rate is carefully monitored in order to maintain
it at the customary level for the sector, which is achieved through
specific action or programs (implemented in function of the disciplines
and geographic areas involved). Turnover rates in India,
which has had a booming IT market for several years now, stand at
approximately 20% instead of the 30% recorded two years ago.
The utilization rate of resources - which measures the share of hours (excluding legal holidays or leave) worked by productive
salaried staff and directly allocated to invoiceable services - is globally progressing compared to 2005 in the case of Projects and
Consulting. Breakdown is as follows:
Quarterly utilization 2005 2006
rate Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Consulting Services 62 67 66 66 66 69 66 69
Technology Services 78 79 79 79 79 80 80 80
Local Professional Services 85 86 86 86 85 85 86 86
It should be noted that utilization rates are not monitored for outsourcing business, for which the indicator does not reflect the performance
evolution.
Since 2003, the Group measures and monitors the evolution of
the indicators designed to provide pointers on the breakdown
of its headcount. Average seniority, average age and male/female
breakdown are recorded under these indicators.
BREAKDOWN OF WORKFORCE BY SENIORITY:
EVOLUTION 2004-2006
Evolution of average seniority reflects the Group’s recruitment
policy over the last few years and explains the low percentage
of people with 3 and 4 years’ seniority within the Group. On
the other hand, the recovery recorded - slow in taking off in
2004, then becoming gradually stronger in 2005 and 2006 -
explains the growing, albeit now-preponderant share of people
with less than 2 years’ seniority. Furthermore, the development
of outsourcing, with its historically more stable headcount, also
explains (as a result of staff transfers such as TXU and Aspire,
in particular) the relative stability of the proportion of staff with
5 or more years’ seniority.
40
35
30
25
20
15
10
5
0
14,3 %
22,1 %
26,1%
12,2 %
15,2%
21,3 %
25,8%
14,1 %
7,6 %
29,1 %
30,8 %
28,3 %
Dec 04
Dec 05
Dec 06
18,6 %
17,8 %
16,7 %