CONTENTS - Capgemini

is beginning to produce a European business model of its own:
“Distribution of banking products is still local on the whole, but back
office activity is developing on a European scale as payment, credit
and leasing are centralized”, notes Bertrand Lavayssière, Director
Banking, Finance, Insurance for Capgemini.
Taking stock of 2006. The wave of giant merger & acquisition
transactions - with the resulting transformation of organizations,
reshaping of IT systems and creation of shared service centers –
feeds into the Group consulting and project management activities.
For example, Capgemini is working on a “Merger Management”
project involving all at the Eastern European entities of a major
European bank. The Group also works with an entity recently
acquired by a French banking institution. As for SEPA, Bertrand
Lavayssière estimates that the Payments Area has engendered a
5-billion-euro market of consulting, project management and
outsourcing engagements. Capgemini is currently performing
consulting assignments, on behalf of 8 major European banks,
looking into the actual impact of SEPA and the possible response
strategies. The American banks, whose domestic expansion has
been hindered somewhat by the regulatory measures, are now
seeking new opportunities in Europe and Asia. They are also turning
to offshore on a massive scale for their back-office functions
(e.g. Citibank, employing 22,000 people in India). As witnessed
by Capgemini’s announcement in October 2006, the acquisition
of Kanbay, specialized in the development of IT projects for the
Banking & Finance sector and employing 6,900 people (5,000
in India), is a perfect demonstration of the company’s sharp flair
in this respect.
Prospects for 2007. This project has enabled the Group to
raise its profile considerably in this vital sector in the United
States. Globally, Capgemini is now ready to serve both the
top Anglo-American clients, in the immediate future, and the
European institutions – which are beginning to take a serious
interest in offshore, – in the short term.
D - Manufacturing, Retail & Distribution
Sector
Globalization and the growth of emerging markets are key
issues impacting the world of manufacturing, retail and distribution
today.
Background to 2006. Globalization affects the industry in
three key ways. Firstly, emerging countries such as India and
China have become increasingly important sourcing markets
for skills and production. Secondly, these regions are growing
in significance as markets in their own right, with a burgeoning
middle class that already has significant spending power
for goods and services. This is leading giants such as General
Motors and Wal-Mart, looking for new growth markets, to
turn to areas such as India and China. Finally, major players
in these markets are increasingly driving industry changes and
consolidation. In the steel industry, for example, there have
been several recent takeovers of Western players by companies
like Tata Steel and Mittal. Meantime, the retail sector in Europe
is growing again, after several years of stagnation. Retailers are
investing in stores and store technology, as well as focusing on
making the supply chain more responsive to actual demand and
responding to new regulations such as food traceability.
Taking stock of 2006. “We have already signed contracts for
consulting services with local Indian retailers and are involved in
discussions with other Indian companies, which, like their Chinese
counterparts, are interested in the application of Western best practices
to their businesses,” explains Bernard Helders, Global Head
of Manufacturing, Retail & Distribution. In the distribution
segment, Capgemini has been working with clients around
the Logistics Service Providers (LSP) program, the Group’s
joint initiative with SAP designed to provide integrated, flexible
end-to-end solutions to help LSPs manage their business
processes and reduce the complexity of their IT systems. On
the strength of its expertise in consumer products and retail,
Capgemini worked with the Global Commerce Initiative and
Intel to publish an important study titled “2016: The Future
Value Chain,” in partnership with the key players in the industry.
This study defines a unique vision of the total consumer
goods value chain from manufacture to consumption and
addresses the changes and challenges the industry will face in
the coming decade.
Prospects for 2007. Against the background of globalization
and efficiency enhancement, Capgemini’s Manufacturing, Retail
and Distribution sector will continue to bring innovation to
the industry, while helping clients with process improvement.
The sector will also focus on increasing industrialization with
greater domain specialization of our Indian operations.
E - Telecommunications, Media &
Entertainment Sector
Service convergence is the focus of attention for all the players
in the sector as a means of revitalizing market growth. Setting
up in emergent countries such as India is also the order of
the day.
Background to 2006. The key trend in the sector is the marketing
by the operators of so-called “convergence” applications.
These applications combine voice, internet and TV or cinema
content. They sometimes combine with 3G mobile services and
are designated “triple” or “quadruple play”. “These services are
available in most European countries and are already being sold
by the traditional retail outlets,” says Didier Bonnet, Head of
ANNUAL REPORT 2006 Capgemini
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