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Strategy of internationalization of Cap Gemini

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The Cap Gemini group is today considered a European leader and pioneer, since it was the first to offer an expanded range of services to meet the new needs brought about by these changes. These services range from intellectual strategy consulting, to outsourcing of processes and systems.

Cap Gemini has been able to reshape the environment to its advantage through a global organization that ensures rapid response, and targeting problems provided by the transfer of good management skills. Due to the different plans undertaken, such as the Genesis program and the convergence program, it maintains its capacity for action.

Thus, the study of such a growing group and more specifically its internationalization strategy may not seem attractive because of the challenges involved in shedding light on the phenomena of current interest. Another aspect of its appeal is reflected in what it addresses as a particular segment; professionals, and having a strategy for B to B.

This makes it a group that remains unknown to the general public, but is nevertheless one of the forerunners among IT service providers.

Cap Gemini operates in the markets of management consulting and IT services. These markets were evaluated, world over, in 2007 at approximately 1500 billion euros. The main features of these markets are as follows: significant fragmentation but with a tendency towards concentration. The top 10 players share 26% of this market, against the 13% of the last 5 years.

IT spending growth in the coming years is estimated at over 10% per year. A growing reliance on outsourcing of IT spending leading IT services companies to increase their share of total spending. A rapid technological change which causes a permanent renewal needs and offers products and services at low costs.

A combination of more frequent demand for management consulting and IT services. Two events in particular, are responsible for accelerating the demand for computer services, the transition to the euro and crossing the threshold of the year 2010.

Another factor to be considered is the strategic framework of information technology services. If the computer services sector remains buoyant in the medium term, it should not regain growth rates comparable to those recorded in the 80's.

Indeed, this sector has registered a marked decline in growth in the early 90's. This decline is tied to the economic crisis and reflecting its maturation. Moreover, competition has increased considerably.

On the one hand there are the American actors who enjoy the broad market are seeking to take a considerable market share in the European market. So IBM had acquired CGI Informatique. On the other hand, there are other players in close or related sectors, such as computer manufacturers, computer operators, software vendors, or consulting firms.

Moreover, its evolution is strongly differentiated by country and type of benefits. The European market for software and IT services grew 9.6% in 2007 to $ 970.917 trillion euros.

This is an evolution that is differentiated by country. There are many factors that explain the acceleration of market growth. The demand for services for functions such as logistics, direct relationships with customers or the decision support is one of them.

Tags: about Cap Gemini, Cap Gemini strategy, internalization of Cap Gemini, impact of transition to euro for IT companies, IT market situation and figures

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