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THE CAPGEMINI GROUP<br />
I – COMPANY HISTORY<br />
Founded by Serge Kampf in Grenoble in 1967, <strong>Capgemini</strong> has<br />
grown to become one of the world’s leading consulting and<br />
information technology service companies by driving a strategy of<br />
development and diversification that has combined both internal<br />
and external growth.<br />
The Group has progressively extended its activities in Europe,<br />
in particular with the acquisition of Programator in Scandinavia,<br />
Hoskyns in the United Kingdom (1990), and Volmac in the<br />
Netherlands (1992).<br />
At the same time, <strong>Capgemini</strong> has developed its management<br />
consulting activities with the acquisition of two American companies,<br />
United Research and Mac Group, in the early 90s, the<br />
German company, Gruber Titze & Partners, in 1993, followed<br />
by the French firm Bossard in 1997.<br />
More recently, the acquisition of Ernst & Young Consulting<br />
(2000) strengthened the Group’s global profile, significantly<br />
increasing its presence in North America and in a certain number<br />
of European countries.<br />
The years 2001, 2002, 2003 and 2004 proved to be particularly difficult<br />
for the IT service sector and it became necessary to rebalance <strong>Capgemini</strong>’s<br />
portfolio of activities in favor of two of its disciplines - local IT<br />
services and outsourcing – and around the Rightshore TM concept.<br />
The acquisition of Transiciel, at the end of 2003, enabled<br />
<strong>Capgemini</strong> to double the size of Sogeti, an entity formed in<br />
2001 in the local professional services domain, and which<br />
contributed 16% to Group revenues in 2005. In the area of<br />
outsourcing, from 2004/2005 onwards, the Group reaped the<br />
rewards from the efforts undertaken to establish its presence<br />
both in Europe and in North America by winning a number of<br />
major contracts (HMRC, TXU, Schneider Electric).<br />
In addition, <strong>Capgemini</strong> became the first European company to<br />
take the offshore route. <strong>Capgemini</strong> chose to set itself apart from<br />
its major rivals by proposing an “à la carte” system for the provision<br />
of its services. The system is modulated according to the<br />
requirements, the project envisaged and the specific culture of the<br />
particular client. This is the idea behind Rightshore TM .<br />
The Group’s profile has therefore changed significantly in a few<br />
years, demonstrating an ability to respond to the new challenges<br />
arising in the IT services and consulting industries. The 2005<br />
results evidenced this firm recovery. 2006 was a financial period<br />
of strong growth and increased profitability for the Group as<br />
shown by the dynamism of its disciplines, strengthened by its<br />
sector expertise. This year it posted net income of 293 million<br />
euros and revenues of 7.7 billion euros. <strong>Capgemini</strong> has regained<br />
its fighting spirit as demonstrated by the acquisitions of Kanbay,<br />
FuE and Indigo. In addition, due to the deep changes in<br />
the market, the Group has decided to launch an ambitious and<br />
demanding program of development and conquest.<br />
II – THE CAPGEMINI DISCIPLINES<br />
A - One mission, four disciplines<br />
The <strong>Capgemini</strong> mission: is to help its clients to transform in<br />
order to improve their performance. For this purpose, an integrated<br />
service offering, comprised of sector expertise and specific<br />
disciplines, is proposed to them accordingly.<br />
The four <strong>Capgemini</strong> disciplines are:<br />
Consulting Services (CS): helping our clients to identify,<br />
structure and execute their transformation projects, for a longlasting<br />
impact on their growth and competitive edge.<br />
Technology Services (TS or Integration): formulating, developing<br />
and implementing all kinds of technical projects, from<br />
the very smallest to the very largest.<br />
Outsourcing Services (OS): assisting our clients in complete<br />
or partial outsourcing of their information technology systems<br />
and other closely-related activities.<br />
Local Professional Services (Sogeti or LPS): offering a range<br />
of information technology services adapted to local needs in<br />
terms of infrastructure, applications and engineering.<br />
Present in thirty-two countries and with a workforce of 68,000,<br />
generating revenues of 7,7 billion euros in 2006, the Group offers<br />
a wide range of integrated services, organized around its four disciplines<br />
and sector expertise. Services range from strategy-making<br />
to the maintenance of IT systems.<br />
Each of the four business lines, comprising the Group’s service offering,<br />
exists as an autonomous unit with its own objectives, business<br />
models and recruitment processes. By combining the expertise of<br />
these units, integrated transformation services can be offered to our<br />
clients. Hence, the Group’s key strength lies in knowing how to<br />
interlink its multiple skills in order to respond to projects requiring<br />
a crosswise approach, thereby satisfying the needs of clients seeking<br />
commitment to the achievement of measurable, sustainable results.<br />
<strong>Capgemini</strong> is independent from any software publisher or<br />
hardware manufacturer. In an effort to provide our clients<br />
with the best products and know-how, the Group has formed<br />
a network of strategic alliances and partnerships. This enables<br />
us to freely and knowingly select and deliver reliable solutions,<br />
precisely tailored to each and every client’s needs. <strong>Capgemini</strong><br />
ANNUAL REPORT 2006 <strong>Capgemini</strong><br />
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