A fall in business technology budgets has caused revenue to plummet at IT consultancy and services firm Capgemini.

The French company reported a 7.3 per cent revenue reduction over the third quarter to €1.95bn (£1.75bn) across all its business segments.

Citing a "sharp reduction in corporate IT spending", the company said fourth-quarter revenue is expected to decline by a similar amount to that of the third quarter.

Due to an "extremely tight" rein on costs, the company expects its full-year operating margin to increase seven per cent year on year.

“Although there are signs that activity is stabilising and even picking up in some market segments, we do not expect to see benefits immediately,” the company said in a statement.

The firm said it will launch five service offerings focused on high-growth markets between now and March 2010 to "leverage the upturn".