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PRESENTATION OF THE GROUP AND ITS ACTIVITIES
1.7 Risk analysis
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Registration Document 2016 — Capgemini
Competition
factors
both financial and operational.
substantial resources, giving them significant scope for action,
The IT consulting and services business is highly competitive.
Major players, both French and international, operate with
financial results.
The Group’s inability to understand, satisfy or anticipate the
current and future needs of our clients and prospective clients by
launching relevant services on the market, could impact our
Furthermore, the concentration of players in this market could
offer opportunities or be prejudicial to the Group.
Risk management systems
Department (mergers and acquisitions) regularly assesses
potential targets that could integrate the Group in the future.
assess the weight, strengths and weaknesses of the main players.
To monitor the competitive environment, the Development
The Group monitors strategy in its various markets in order to
kept up-to-date throughout all contract phases (see Client risk
below).
The Group also seeks continually to ensure client satisfaction in
order to build long-term relationships. A satisfaction measure is
External growth
Risk factors
lower than their acquisition cost (see Note 2 to Capgemini’s).
and internal procedures. Unforeseen problems can generate
higher integration costs and/or lower savings or synergies than
initially forecast. If a material, unidentified liability subsequently
comes to light, the value of the assets acquired may turn out to be
maintain the client base intact, coordinate development strategy
effectively, especially from an operating and commercial
perspective, and dovetail and/or integrate information systems
activity, particularly in the service sector, may prove to be a longer
and more difficult process than predicted. The success of an
external growth transaction largely depends on the extent to
which the Group is able to retain key managers and employees,
The implementation of external growth transactions, one of the
cornerstones of the Group’s development strategy, can comport a
number of risks. Integrating any newly-acquired company or
Risk management systems
integration of newly-acquired businesses. The successful
integration of new businesses is also facilitated by the Group’s
organization along geographic regions and business lines. The
Group’s Legal Affairs Department is involved in the negotiation of
the legal aspects of merger/acquisition projects.
1970s. Entrepreneurial spirit, managerial autonomy, and the
principle of subsidiarity are crucial factors in the successful
Capgemini has a wealth of experience in acquisitions, having
carried out around 50 external growth transactions since the
responsible for the implementation of appraisal systems and the
regular review of management reports used to monitor the
integration process and avoid any mismatch.
the necessary authority and asserts his role as manager
An integration manager is appointed for all acquisitions. He/she is
involved from early on in the acquisition process and generally
from the due diligence stage and, in all events, prior to signature
of the contract. He/she has substantial technical experience and
This integration process was notably implemented in 2015 on the
acquisition of IGATE.
Reputation
Risk factors
on large-scale or sensitive projects, could negatively impact the
Group’s image and credibility in the eyes of its clients, and by
extension, its ability to maintain or develop certain activities.
Intense media coverage of any difficulties encountered, especially
When dealing with third parties and clients, the behavior of teams
may be inconsistent with our principles (values, work
methods, etc.) and could even present a danger to the Company
if contrary to ethics or legislation.
Finally, employee internet users could make negative comments
on social media (Twitter, Facebook, etc.) on Capgemini’s
performance, service offers or human resource policy, thereby
challenge the cyber security of our internal IT systems and the
systems we deliver to clients, and these cyber risks could have a
negative impact on our reputation.
tarnishing the Group’s reputation. New social media players
Risk management systems
implementation of the Ethics & Compliance Program covering all
Group entities.
explained in these two policies and follow an e-learning training
course thereon. An organizational structure rolled-out in each
country by an Ethics and Compliance Officer, monitors the
trust, freedom, team spirit, modesty and fun). Today, each of its
embedded in Capgemini. A specific policy dealing with the
prevention of corruption was distributed within the Group in 2011,
followed by a second in 2012 covering anti-trust legislation. All
new recruits are asked to undertake to comply with the principles
ensuring their compliance by individuals in their Business Unit or
who participate on joint projects. From this point of view, the Code
of Business Ethics distributed in 2010 represents the continuation
and formal documentation of cultural reflexes already firmly
managers and employees continue to refer to these values and
have committed to applying them personally on a daily basis and
Compliance with clear principles of business ethics is firmly
embedded in Capgemini’s culture. On its creation in 1967, the
Group through its founder, Serge Kampf, identified seven core
values which form the keystone of its identity (honesty, boldness,
certain number of criteria concerning business ethics and legal
and physical security in the conduct of business, as well as tax
compliance.
The Group decided many years ago to only employ individuals
and have commercial relations in those countries satisfying a
rules covering the activities of Group employees on internal and
external social media, a social media code of conduct was also
drafted and is freely available on the Group’s website.
Since 2011, the Group has implemented a solution for measuring
and monitoring conversations on Group brands on social media.
Internal social media are also monitored in order to best respond
to employee comments. Finally, in order to strengthen governance
duly authorized by Group Management are permitted to speak on
behalf of the Group.
Therefore, to control and limit risks to its reputation, only persons
business sector, the Group is frequently called upon by the media
and the financial community to provide information on its activities.
Listed on the Paris Stock Exchange and a global leader in its