Gartner’s take on the Capgemini – IGate acquisition

by | Apr 28, 2015

Partha Iyengar, Gartner Vice President and Head of Research – India

Capgemini has been investing in creating a more compelling global delivery offering, starting with the Kanbay acquisition earlier. However, compared to their other ‘global global’ peers, Accenture and IBM, they were still a distant third in this capability, and compared to the global Indian providers were even more behind. This acquisition, in one fell stroke, levels the playing field to a large extent both in terms of capacity as well as breadth of coverage areas and industry verticals. The added HUGE bonus for Capgemini is that it gives them, again in one move, a great presence and foothold in the US market, which has always been a challenge for them as a Europe centric provider. This boosts their presence and revenue in the largest market for global sourcing and gives them a credible offering for the US market. Acquiring this in an inorganic manner, especially since they were very late to the global sourcing paradigm earlier on, would have been difficult to impossible.

The biggest challenge and hurdle ahead of them is the multi-cultural integration task that lies ahead. Their track record with Kanbay was not the biggest success, and they need to show that they can do much better with this acquisition, which is a much bigger one as well. They will have to move very quickly to convince clients that projects are safe and that the Cap acquisition gives IGate clients a much bigger capability and deeper domain expertise in some domains (which it does). If they are not successful in doing this, they risk the flight of clients, especially in the US.

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Brian Pereira
Brian Pereira
Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]
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