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PRESENTATION OF THE GROUP AND ITS ACTIVITIES
1.7 Risk analysis
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Registration Document 2016 — Capgemini
or a technical (fire or natural event) or human (error/negligence or
malicious act) incident could generate additional risks.
The bankruptcy of a supplier, its takeover by a competitor (and a
change in its current service offer/product range), a change in its
sales model, such as the use of Cloud Computing for IT services,
party, budget overruns, the use of unapproved suppliers and
purchases that do not comply with equipment strategic decisions,
can also generate risks.
Finally, the poor management of expenditure incurred with a third
management systems
The Group has signed framework agreements and contracts with
its suppliers containing clauses similar to those contained in
contracts signed with its clients, in a bid to improve the
certain number of strategic contracts with major and financially
and method. Over recent years, the Group has signed strategic
partnership contracts with a diversified group of major suppliers in
order to preserve its independence and guarantee the
sustainability of its services. Furthermore, the Group has signed a
established in order to remedy the failures, if any.
sound suppliers. Finally, the related risks represented by smaller
suppliers and/or start-ups are analyzed and back-up plans are
framework agreements and contracts clearly stipulate obligations
with respect to delivery deadlines, service level and operating tests
as well as penalties for non-compliance. The Group policy defines
in great detail the supplier and sub-contractor selection process
management of contractual risks and acceptance risks. These
and approval of purchase orders. The procurement tool contains
an approval chain that ensures the correct allocation of costs to
projects and permits their control and provides specific methods
for financial approval. The centralized management of data in this
multiple criteria, several of which concern ethical standards and
sustainable development.
procurement base enables us to control and better manage
Group expenditure and supplier selection. Suppliers are selected
by a specialized team based on rigorous procedures using
In parallel, Capgemini has implemented a tool allowing for
worldwide procurement management and monitoring. This tool,
known as GPS (Global Procurement System), is used for the issue
Geopolitics
Risk factors
Capgemini has permanent operations in approximately 40
countries. The bulk of its revenues are generated in Europe and
North America, which are economically and politically stable.
(industrial disputes and strikes, wage inflation, which is particularly
rife in the IT sector, inadequate domestic infrastructure and higher
taxes).
Asia and Latin America, political and social instability in some
regions of India and adjoining countries, and even terrorist attacks.
From an economic standpoint, our Group is exposed to the
negative effects of countries with insufficiently controlled growth
Nonetheless, an increasing portion of its production is based in
emerging countries, and primarily India, which now represents
approximately 50% of the Group’s total headcount. In addition,
Capgemini is exposed to the risk of natural disasters in South East
performance and reputation. The risk of natural disasters in certain
countries where we are established, political instability and even
terrorist attacks and similar risks in countries where we may be
called on to work in response to client requirements, could impact
Sending employees to countries which are geopolitically unstable
may expose the Group to risks regarding the physical safety of
these employees. Economic instability and poorly controlled
growth can also be a source of risk for the Company’s
the physical safety of our employees. Economic uncertainty in an
unstable fiscal and social environment, etc.), which could impact
our economic performance.
unstable environment generates many other risks (galloping
inflation and its impact on wages, poorly adapted infrastructures,
Risk management systems
departure.
Furthermore, these organizations also help resolve any potential
difficulties encountered by employees assigned to work in these
countries and provide risk prevention training courses prior to their
independently the risk exposure in each country. Accordingly,
some countries are subject to strict travel bans. The risk is
reassessed continuously based on the geopolitical position and
warning systems are used to inform employees of country risks.
the Group conducts engagements in order to satisfy the demands
of its major clients. Specific contracts have been agreed with
organizations specialized in managing these risks to assess
offer satisfactory guarantees in terms of individual security. Work
on client engagements in certain countries classified as “at risk” is
subject to approval by the Group Review Board. Rules and
procedures have been drawn up for “at risk” territories in which
The Capgemini Group restricts operations to countries able to
sent to countries considered “at risk”. Every employee required to
work abroad receives specific training.
Strict approval criteria must be met before employees are sent to
work in countries where there are no existing Group operations,
and even stricter criteria apply in the event that employees are
emergencies and potential repatriation (for more information
please refer to the Insurance section of this document).
Finally, a dedicated international insurance program provides
assistance to all employees covering their security, medical
2016, the Group strengthened its security policy and its Crisis.
In addition, following the terrorist attacks in France in 2015 and
Legal risks
1.7.4
contract is governed by specific regulations that could negatively
impact our activities. Other factors such as the size and
geographical locations of the Group also expose it to legal and tax
risks.
well as our suppliers and sub-contractors (software, IT hardware,
host sites, etc.) when implementing tailored solutions. Each
a given project are covered by contracts signed with our clients as
Capgemini Group provides a range of services to its clients who in
turn operate in a variety of business sectors. All services relating to