Capgemini sees recovery in financial services

Capgemini sees recovery in financial services
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First Published: Thu, Sep 24 2009. 11 05 PM IST
Updated: Thu, Sep 24 2009. 11 05 PM IST
Bangalore: Information technology and business consultancy company Capgemini SA is seeing some recovery in its financial services business as clients look to cut costs and boost growth, and the pricing environment is stable, an official said on Thursday.
Financial services accounted for 16% of Capgemeni’s revenue in the first half of this year, down from 18.4% in the year-ago period, reflecting turmoil in the sector.
“In financial services, we have started to see some level of recovery already...and certainly we are hoping to see some of that in 2010,” said Salil Parekh, global head of Capgemini’s financial services business.
“Recovery is not like a quick, rapid recovery. It’s coming together across the world in a slow fashion,” Parekh said in an interview. “My guess is if we start to see growth coming back within 12 months, pricing should be back.”
Capgemini cut its 2009 sales outlook in July, saying it was unsure signs that activity might be stabilizing in some regions would translate into a full-blown recovery for the battered technology sector.
Europe’s largest computer consultancy is looking to boost Asia-Pacific’s contribution to revenue to 5% in three years, said Parekh, who is also chief executive of the Asia-Pacific and India business units. Asia Pacific brought in about 1.5% of Capgemini’s total revenue in the first half of 2009.
Capgemini, which said last week it was buying Australian software testing company Nu Solutions Pty Ltd, is scouting for more buys in areas including China, Singapore and Thailand.
“There is a strong focus on growing outside the core markets...of Europe and North America,” Parekh, who has been working with Capgemini since 1992, said. “We will continue to see above-average growth in Asia Pacific.”
Capgemini, which competes for IT budgets with the likes of Accenture Plc and Atos Origin SA, sees good potential in India as government departments and private companies step up technology investment.
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First Published: Thu, Sep 24 2009. 11 05 PM IST