Capgemini posts 20 percent growth rate in the region for the first half of 2012
Capgemini just wrapped up a strong first half of 2012, with overall revenues up more than 8 percent from the first half of 2011. However, the big success story was North America, where the firm reported 20 percent growth. Lanny Cohen, who is Capgemini's CEO of Application Services in North America as well as the leader of Capgemini's Global Technology Services Council, says the secret to the success lies in the "distinctiveness" of the firm, and the "market is really starting to take notice." North America was the top performing geography and the region is on pace to become the largest in terms of revenue. Both the Technology Services and Consulting business units grew more than 20 percent. Consulting caught up with Cohen to discuss the first half of 2012 and beyond.
Consulting: What were the drivers of the success in North America?
Cohen: I'll give you three. First off, we had a major focus on our existing account base. We've really doubled down on that group and in the first half of 2012, we were more biased toward our existing clients and that's paid off quite a bit. Previously, we may have been a bit more focused on getting new clients, but we shifted that in the first half of this year and it paid off.
Second is the business mix—big data and analytics, cloud, mobility and social media. Those emerging business lines for us helped offset the downside of some of the more traditional services that were declining in the market. The third one is the one that I'm most excited about: Capgemini's message is really starting to resonate in the market. I think you are seeing a firm that is truly distinctive.
Consulting: How so?
Cohen: We've got the historical legacy and global reach of a big western player with a deep content richness, but also a concentration offshore that enables us to leverage that industrialized delivery base and global delivery network to give clients the best of both worlds. We're getting more at bats and more looks in the market, and I think that's been a big plus. And what that means to clients is typically a superior value proposition and a better return on their investment.
Consulting: Do you see this type of growth continuing in North America?
Cohen: For the current quarter we are continuing to see a lot of good things and it looks really strong. We do see some uncertainties in the market. Has there been a big slowdown like we've seen in the past? 'No.' Have we seen some slowdown? 'Yes.' That being said, I think those three things I just spoke about will continue to carry us through.
Consulting: What are you seeing from clients?
Cohen: Clients are asking for ideas, they know they need to do something different. This isn't about cost cutting anymore; they need to find new sources of revenue and new ways to influence the top-line of the business.
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