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“Innovation and competitiveness
are clearly now the two pillars
of our growth strategy.”
“Innovation and competitiveness are clearly now the two pillars of our growth strategy.”
What opportunities is the digital revolution creating for businesses? Is Capgemini positioned to help them?
A talk with Ray Wang, Founder and Chairman of Constellation Research,
an American consulting firm specializing in “digital disruption”.
What opportunities is the digital revolution creating for businesses? Is Capgemini positioned to help them?
A talk with Ray Wang, Founder and Chairman of Constellation Research,
an American consulting firm specializing in “digital disruption”.
“A radical change is happening. B2B and B2C
are being overtaken by P2P—people to people.
Companies that ignore it are taking a big risk.”
Ray Wang, Principal Analyst, Founder and Chairman of Constellation Research
“A radical change is happening. B2B and B2C are being overtaken by P2P—people to people. Companies that ignore it are taking a big risk.”
Ray Wang, Principal Analyst, Founder and Chairman of Constellation Research
Four major technological trends continued to make headlines in 2013: Social media, Mobility, big data & Analytics, and Cloud (SMAC). To help our clients make the most of these developments, Capgemini is running its innovation engine at full throttle. For example, the Group launched a new global service line called Digital Customer Experience (DCX), a comprehensive solution that allows firms to define their digital strategy and adopt customized solutions to transform their customer interaction methods. DCX aims at fostering closer interaction with customers, to help them stand out from the competition and generate growth.
Capgemini's revenue from big data services grew by 16% in 2013. Over 9,000 specialized employees across the Group now help clients get the most out of big data. Capgemini signed major contracts in this area with large organizations such as the European Space Agency, Network Rail (UK), Siemens (Germany), and T-Mobile (North America). Capgemini Consulting also set up several data analysis projects for a leading car manufacturer with a quantifiable effect on customer relations, customer loyalty, and marketing effectiveness.
The Group increased its resources and offerings to support our clients’ transition to the cloud. Our offer is particularly rich: from data security to the orchestration of public, private, and hybrid clouds, and the development, deployment and management of platforms hosting applications and services. In the SaaS (Software-as-a-Service) market, Capgemini signed special agreements with major players in Customer Relationship Management (Salesforce.com), Enterprise Resource Planning (NetSuite), Human Resource management (Workday), and document management and storage (Box). As part of our existing strategic alliances, the Group actively participates in the development of cloud services with HP, IBM, Oracle, and SAP.
In 2013, Capgemini recruited more than 32,000 employees worldwide.
44% of these new hires are graduates from top engineering and business schools. The battle for talent is raging in IT. That is why the Group significantly expanded the use of digital tools in 2013. We purchased nearly 200 LinkedIn recruitment licenses to help target the most suitable candidates. In 2013, we also launched an internal mobility program called “promote first, hire second.”
Capgemini has defined learning frameworks for each of its businesses to support employees as they progress in their career. In 2013, an average of 20,000 training hours were provided by the Group daily, of which 40% were online. Capgemini University plays a key role: it ensures that all the competencies taught around the world are aligned with Group's core businesses. It puts emphasis on the subject most relevant to clients, such as technological and regulatory changes and major technology trends.
Capgemini believes that the diversity of its employees is a real competitive advantage. In 2013, we increased our efforts to build a workforce with a wide variety of profiles, experiences, cultures, and lifestyles. Our efforts include greater gender diversity, via Women@Capgemini program, and integration of employees with disabilities. Capgemini earning several awards in this area and 73% of staff completed e-learning on this topic. In 2013, and again in 2014, the Group received the “One of the World’s Most Ethical Companies” award from the Ethisphere Institute.
Our customers operate in markets that are increasingly competitive. The same is true for Capgemini. The Group is exposed to dynamic western competitors and expanding Indian players. Capgemini accelerated in three areas in 2013. First, we demonstrated our ability to combine onshore, nearshore, and offshore resources to create tailored, cost-competitive services. Second, we perfected a comprehensive approach to competitiveness that goes beyond cost to include quality and innovation. Finally, we provided specific competitiveness solutions for each of its businesses and those of its customers.
In 2013, Capgemini launched the next-generation Application Management platform, which was inspired by the world of manufacturing. It uses Industrialized Managed Service Centers (IMSC) that bring together hundreds of trained service professionals in a “factory model” where teams are specialized on one technology and work for several customers. This new platform has won over several multinational companies such as Statoil, a Fortune Global 50 energy company headquartered in Norway.
The Group has transformed the way it manages its infrastructure by launching an extensive program of standardization. Previously, we had five suppliers using many different technologies. Today, we have a major agreement with EMC2, which is responsible for 80% of Capgemini’s storage capacity using only two technologies. This large-scale project has brought tangible benefits to customers, including reduced costs and better service availability and stability, thanks to a simpler environment.
Already present in over 40 countries, the Group further increased the international scope of its business, production model, and portfolio in 2013. Capgemini operates Country Boards that bring together the heads of various business units. In 2013, orders from the 50 or so large accounts managed by the Boards increased by 6%. We also strengthened our offshoring model, which provides the right balance of talent from onshore, nearshore and offshore locations at a competitive cost.
In 2013, Capgemini’s sales in Asia-Pacific and Latin America grew 12% (organic growth). The Group is developing its resources in these strategic regions and is strengthening its position in dynamic local markets. In Australia, our revenues grew 16% in 2013. In China, we now has more than 2,300 employees. Latin American generated the Group’s strongest growth, and we are the leader in financial services in Brazil.
In 2013, innovative strategic offerings around major technological transformations, such as cloud computing, mobility and big data, accounted for 33% of order intake, compared to 28% in 2012. With BPO Analytics, customers can, for example, entrust Capgemini with managing all their data flows. Capgemini’s demand-driven supply chain (DDSC) is a solution designed for manufacturers and distributors of consumer goods. Major retailers, such as Burberry, Limited Brands, Hema, Lowe’s and American Greetings use DDSC. In banking and insurance, Capgemini launched several mobile payment platforms for clients around the world.
Capgemini works closely with many technology partners to help clients become leaders in their respective markets. In 2013, our partnership strategy became more selective and more targeted. We formed close ties with innovative, high-growth companies in the most important areas: cloud, big data, mobility and social networking. We reinforced our bonds with industry leaders (IBM, HP, Oracle EMC, SAP, Microsoft). We also made a strong push into co-innovation. Our catalog of proprietary solutions now includes co-developed offers.
By deploying smart meters in our own buildings in Mumbai, India, Capgemini reduced energy consumption in two buildings by 10% in two months.
Starting digital schools in Italy, supporting micro-entrepreneurs in emerging countries, sponsoring youth from disadvantaged neighborhoods in France. Around the world, Capgemini took action in 2013 that had tangible benefits for everyone: employees, shareholders and communities.
In 2013, we continued to strengthen the ties with our key accounts and to accompany them wherever they are present. It helped us win more major contracts.
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The Netherlands’ Cadaster, Land Registry and Mapping Agency.
Kadaster signed an agreement with Capgemini for the outsourcing of Kadaster’s workplace services, office automation, and datacenter services. The contract has an estimated value of €100 million over a 6-year period. It will enable Kadaster to improve its quality of service and develop innovative services.
An American producer of high-tech materials and chemicals.
Capgemini will deliver a broad range of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) services to Ferro. This €28 million deal advances Ferro’s value creation strategy and is a key element in Ferro’s efforts to significantly improve business process efficiencies and reach cumulative operational cost savings of €54 million through 2014.
The Norwegian post office.
Norway Post, which has worked with Capgemini for 10 years, picked the Group the delivery of application management and development of core applications, as part of its modernization program. The agreement has a value of €34 million and will last through 2019.
Swedish-headquartered global high-tech company.
Sandvik selected Capgemini to deliver part of its transactional finance and accounting processes. As part of the 5-year, multimillion euro contract, Capgemini BPO will standardize and optimize Sandvik’s global transactional finance activities, implementing the new model in 29 countries.
Capgemini was awarded the EAGLE II Contract for Department of Homeland Security from the United States Federal Government. The Group was one of six major ICT (Information, Communication and Technology) companies selected as part of EAGLE II (Enterprise Acquisition Gateway for Leading Edge Solutions II). Capgemini will provide independent test, validation, verification, and evaluation solutions to validate that all IT products and services meet DHS standards.
A major European utility.
Capgemini signed a five-year deal with E.ON Elnät AB. The Group will deliver a range of smart meter management services for electricity and gas to E.ON’s power grid in Sweden. This double-digit agreement will enable E.ON to consolidate its service providers, IT systems and operations in Sweden.
Main natural gas distribution system operator in France.
GrDF chose Capgemini to develop the information system for the new GrDF gas meters as part of a dual-contract, €23-million deal. It plans to install new smart meters in 11 million French households between 2015 and 2022, the world’s largest gas-meter deployment to date.
Internal IT service provider for the German Federal Revenue Administration.
Capgemini signed three framework agreements with the Data Processing and Information Technology Centre (ZIVIT). Each framework agreement is concluded for a period of three years. They cover services of architecture consulting, software development and business process maintenance for the different branches of the Federal Revenue Administration.
Southeast Consortium Unemployment Insurance Benefits Initiative.
The three states of Georgia, North Carolina and South Carolina awarded a contract to Capgemini for the development and implementation of a multi-state Unemployment Insurance benefits system. Worth over €40 million, this deal showcases the capabilities of Capgemini in this domain, and in particular its AcUlty Unemployment Insurance Benefits solution. It will enable the unemployment benefits system of the three states to collect better quality information more quickly.
The fast-growing parent company of British Gas.
In 2013, Centrica awarded a five-year contract to Capgemini for the management and support of its corporate global SAP services in the UK, Norway, The Netherlands and North America. The contract will support the company's ambitious plans for continued expansion in the North Sea and internationally.
In 2013, we have received numerous awards from our clients; large groups have chosen us as "preferred IT partner." Analysts and audit firms have also named us as the leader in key markets such as digital consulting. Our ethics ere also rewarded. Find out more by clicking the icons.
In 2013, the Group received the “One of the World’s Most Ethical Companies” award from the Ethisphere Institute. Every year, the Institute produces a worldwide ranking table that rates companies in 100 countries and 36 different industries for their ethical behavior. Last year, only five service companies were included in this international ranking. This distinction was again conferred on Capgemini in March 2014.
Several key accounts named Capgemini a “preferred partner” in 2013 and the start of 2014.
