Capgemini profit slumps 66 per cent

But outsourcing business in the UK is a bright spot in tough times

Capgemini predicts growth in outsourcing

IT services firm Capgemini has reported a 66 per cent drop in first-half profit, with revenue growth flat compared to the same period last year.

The supplier posted sales of €4,376m (£3,731m), up marginally from €4,374m in 2008, with profit of €78m (£66.5m) down from €231m (£197m).

The UK, however, was a bright spot in the six months for Capgemini, with 12.7 per cent revenue growth due to the greater focus on customers outsourcing compared to some European countries.

Globally, consulting and technology services saw the biggest sales drops, down 13.4 per cent and 2.6 per cent respectively.

Some 28 per cent of Capgemini’s staff now work in offshore service centres, mainly in India but also Poland, China, Morocco and Latin America.

The company said in its financial statement that “first signs emerged of a relative stabilisation of activity in some regions”, with “indications of an upcoming upturn in demand” in some areas.

But the firm is still predicting that all areas of its business except outsourcing will continue to decline in the second half of the year.