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Wednesday, May 18, 2005
Capgemini NA is said to be embarking on a major turnaround program making it most likely to look more like a specialist niche firm. They are probably moving away from the frame of big service provider to a specialist service provider. Consulting line of business appears to be a tough terrain for Capgemini in North America. Strategy to fix: - Close offices, tweak the senior –junior ratio to stretch further, rationalize expense – all these characterize the new approach. Chopping down the range of services substantially, (already sold off its healthcare vertical to Accenture recently), Capgemini is said to be planning to be more nimble and provide the comfort of a small specialist player to end customers. Huge challenges lay ahead – tapping the rich knowledgebase that any consulting company ay boast of and the challenge of lack of synergy in consulting with far less no. of service offerings. This in turn runs the risk of losing key people and in general could create huge concerns for customers. Focussed attention and relationship could find favour with selected clients. In general - this is a reflection of the state of the industry -Offshore firms,highly cash rich as they are shall muscle in and begin to make targeted acquisitions – last twelve months has seen more acquisitions announced by offshore vendors and going by public statements more should follow. Though am not sure whether any offshore firm would look favourably at consulting firms with fat cheques and high cost structure.Perhaps it is easier to do lateral recruitent in significant nubers. Ironically, in a way - high cost outfits like Capgemini may not have many options left.
Category : Service Providers |
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