2016 Annual
Report

Value, innovation and talent:
A landmark year

© Claude Tétot, 'Sans titre 3'
© Claude Tétot, "Sans titre 3"

Living the future since 1967

Capgemini turns 50

From the beginning, Capgemini has been driven by a desire to live the future. In 1967, Serge Kampf, visionary leader, created a small startup in Grenoble which would go on to become a global player in its sector.
We celebrate this year our spirit of conquest and the passion for entrepreneurship, valued by our founder.
This 50th anniversary is also an opportunity for Capgemini to unite its employees around the same vision and history. A history of growth driven by boldness, and the ability to face disruptive technological and business changes head-on.
See how we are "living the future" on our website, and discover the Innovators Race 50 contest gathering the most promising startups of their generation.

3 new recruits
converse with Paul Hermelin about performance, innovation and ambition

At Capgemini, talent is our greatest asset. Paul Hermelin, Chairman and CEO of the Group, invited three new employees, among the more than 50,000 who joined Capgemini in 2016, to discuss the highlights of the year and the challenges ahead.

Interview Paul Hermelin
Ishita Fernandes

I was attracted to the breadth of opportunities within Capgemini and the fact that people really do matter.

Ishita Fernandes Senior Account Executive in Business Services
Damien de Chillaz

I found myself attracted to the digital transformation taking place within this industry, especially with regards to blockchain technology.

Damien de Chillaz Vice President in Financial Services
Everhard Ros

I was attracted to Capgemini due to its global presence, and the role it plays in the topics I am interested in like Internet of Things, defense and aerospace.

Everhard Ros Junior Software Engineer at Sogeti

Creating
and sharing value

Our performance is measured by the value we bring to all our stakeholders: clients, employees, and shareholders. Since its creation in 1967, Capgemini has worked to facilitate the use of technology by people and for people—a position mirrored in our unique approach to IT services and consulting.

Always placing people at the center

Always placing people at the center

The Collaborative Business Experience is at the heart of our client approach, as it enables us to develop and advance together with our clients. The multidisciplinarity of our teams opens a 360° vision on each project: IT systems, business activities, strategy, governance, and human resources. We also offer unparalleled ways to spur innovation and competitiveness (Applied Innovation Exchange, agile production methods, automation, etc.), backed by an ecosystem of partners and technological independence, to provide tailored solutions adapted to our clients’ needs. In the end, we believe that the business value of technology comes from and through people, a philosophy summed up in our brand promise: “People matter, results count.”
Leveraging a network of partners

Leveraging a network of partners

To develop its wide range of solutions, Capgemini works with an ecosystem of partners that ranges from the largest companies in IT to promising young startups. Global partners (e.g. IBM, Google, Microsoft, SAP, and Oracle) with their broad portfolios of platforms have a central role to play in this ecosystem, along with the technology leaders in digital transformation, cloud and cybersecurity. Capgemini also leverages its network of Applied Innovation Exchanges around the world to engage with startups in areas such as blockchain and artificial intelligence.
Unleashing the best talent

Unleashing the best talent

With close to 200,000 talented employees around the world, it’s clear that our people are our most valuable asset. As soon as new employees arrive, we provide them with the necessary tools to engage and evolve within the Group including Capgemini University, career acceleration programs, and skills training to continuously update their expertise. Multicultural and multidisciplinarity, we are committed to creating conditions that help everyone develop new leadership skills, regardless of their profile or mission.
Extending our expertise

Extending our expertise

Creating value for our customers is based on an intimate knowledge of their key concerns and business issues. That is why every year we conduct ambitious research and a large number of studies—our “Thought Leadership”—to share our expertise with them. At the centers of our global Applied Innovation Exchange (AIE) network, we innovate and learn together, in close contact with the most disruptive startups in each field. In 2016 and early 2017, the Group also strengthened its expertise in innovation, design and user experience through several new acquisitions including: Fahrenheit 212, Idean, Itelios, and Oinio.

Digital expertise
in key sectors

Disrupted by technology, businesses around the world are confronted by the pressing need to evolve. In 2016, major organizations increasingly turned to Capgemini to help them achieve their digital transformation. We have a key focus on Digital and Cloud services, which rose by a remarkable 29% in 2016 and now represent 30% of total revenues. While we support our clients across all technology domains and market sectors, we retain a particular focus on six areas: Innovation Consulting, Digital Customer Experience, Insights and Data, Digital Manufacturing, Cloud, and Cybersecurity.

© Bruno Rousselot, 'O. N°2'
©Bruno Rousselot, "O. N°2"

Ikea With Capgemini to improve
the customer experience

Video IKEA

As customer journeys become increasingly complex, digital innovation is not only an accessory to the customer experience, it is a prerequisite. Jonas Hessler, the Global Web, ecommerce, and Digital Channel Manager at IKEA, discusses how partnering with Capgemini has made far-reaching advances in the IKEA customer experience both online and offline.

PDF (2Mb)

Bank of Ireland Building together
the bank of the future

Video Bank of Ireland

Bank of Ireland Group CEO Richie Boucher shares how his company is achieving its digital transformation by adopting and adapting their services to the latest banking infrastructure.

Richie Boucher
CEO of Bank of Ireland Group
96%

of banking executives agree that the industry is evolving toward a digital banking ecosystem, yet only 13% have the systems in place to support it.

World Retail Banking Report 2016, Capgemini and Efma

Financial services

Capgemini serves two-thirds of the world’s largest financial services institutions, providing innovative business and IT solutions that create tangible value. A team of over 56,000 collaborates to meet the individual needs of its clients. Amid the convergence of digital lifestyles and finance, the disruptive force of technology is creating new challenges and opportunities. Capgemini’s success in helping clients to seize these new opportunities was reflected in double-digit bookings and revenue growth in 2016 for financial services, which now accounts for 27% of Group revenues.
Recent clients include: LCL, Zurich, Bank of Ireland

Converse with our experts
70%

of consumers now use channels like online, mobile and social media in their shopping journey.

Building Immersive Retail Experiences, November 2016, Capgemini

Retail and distribution

Hyper-connected consumers coupled with rapid advancements in digital technologies are poised to change the face of retail. First, the widespread adoption of ecommerce cloud in the retail industry has increased both the speed and flexibility in the scaling of online operations. Similarly, predictive analytics are delivering smarter logistics. With over 12,500 CPRD experts dedicated to leveraging emerging technologies, Capgemini offers a full portfolio of sector-specific solutions that help retailers and consumer package goods companies gain competitive advantage.
Recent clients include: IKEA, Boulanger, Darty

Converse with our experts
$1.29

trillion predicted worldwide spending on the Internet of Things in 2020

Worldwide Semiannual Internet of Things Spending Guide, International Data Corporation, January 2017

Manufacturing

Capgemini’s Digital Manufacturing services, launched in May 2016, involve the complete digital transition of production tools and processe. With its ability to integrate real-time data from an IT system, this set of solutions has a central role to play in this transition to a digitalized factory.
3,000 professionals propose two major families of solutions: platforms for the full lifecycle management of both products and industrial assets, and the optimization of operations management, and plant control systems. The offer enables companies within manufacturing industries such as Aerospace & Defense, Automotive, Energy and Utilities, etc.
Recent clients include: Siemens Building Technologies

Converse with our experts
72%

of customers are willing to buy a new car online.

Cars Online Trend Study, November 2016, Capgemini

Automotive

Technology companies are entering the market, driverless cars are already being tested, and customers are expecting an ever-expanding range of digital services. Mobility and connectivity are coming together in a disruptive, digital transformation of the industry. As a service provider to the world’s largest original equipment manufacturers (OEM) and their leading suppliers, Capgemini has developed a comprehensive offer, Automotive Connect.
Recent clients include: Daimler AG, Volvo, Mov’InBlue

Converse with our experts

Always more Competitiveness

The speed of change is throwing traditional business methods into question and disrupting the relevance of entire industries. Fast evolution and adaptation are therefore key to business survival and growth. With close to 200,000 employees and nearly 100 business entities around the world, Capgemini has the resources to react quickly to client needs—a key asset in a digital era when deployment needs to be measured in weeks rather than months.

Resource Management

Given the Group’s global scale, a key factor in its competitiveness is ensuring that the right resources are available at the right time and the right price to match its clients’ demand. The global Resource Supply Chain program optimizes this task, giving Capgemini’s operations teams the visibility they need about the nature, volume and timing of both resource demand and supply. It also offers managers a better insight into resource trends and patterns.
Resource

Sourcing

Like deployment, procurement plays an important role in competitiveness. The Strategic Sourcing program is designed to harness the Group’s purchasing power at a global level with its external suppliers. It comprises not only spending on services and equipment, but also contract specifications and implementation. Along with a drive for efficiency, the program seeks to encourage innovation in meeting the Group’s needs, and unlocking business value that goes beyond price matching.
Sourcing

Automation

Today, the amount of data exposed to organizations is growing exponentially and at a rapidly increasing speed. This is where automation can help, as it allows organizations to transfer repetitive functional and cognitive processes to machines—solving complex business problems at a pace far beyond the capabilities of human beings. Automation provides a range of business benefits, including enhanced productivity, quality, predictability, and agility. For its clients to take advantage of these new opportunities, Capgemini proposes Automation Drive, a new suite of services and capabilities that helps clients identify ways to make automation one of their growth engines.
Automation

Digitalization

From cloud computing to automation and artificial intelligence, Capgemini provides cutting-edge services to support its clients on their digital journey. At the same time, the Group is progressing on its own digital agenda to provide a non-stop drive of digital efficiencies and innovation across the company. In 2016, Group IT launched the Collaborative Workplace initiative to strengthen infrastructures, tools, and processes to make it easier for Capgemini teams to collaborate internally and with their clients. It focuses on the use of mobile and cloud technologies, a simpler application landscape and the development of ever more intuitive user interfaces.
Digitalization
© 2BDB
© Russell Tyler, "2BDB"

Innovation
deployed around the world

Capgemini provides clients with a platform for innovation primarily through its Applied Innovation Exchange (AIE), a worldwide network of 10 innovation centers where clients can test the latest technologies (Internet of Things, data analysis, cloud, cybersecurity, etc.) to design and develop innovative pilot projects. Launched in 2016, the AIE network helps clients to explore emerging technologies and startups, always with a view on how these can be deployed at scale. In addition, the Group is expanding its range of expertise and strengthening its digital presence through acquisitions in 2016 and early 2017. Finally, India is a key source of our global delivery network, helping to apply the latest technologies to deliver the best-in-class projects to our clients around the world.

A Global Network focused on innovation

Video Applied Innovation Exchange

India : Delivery at the forefront of innovation

Video India

New assets for a digital age

In 2016 and early 2017, the Group strengthened its expertise in innovation, design and user experience through several bolt-on acquisitions including:
Fahrenheit 212 (New York) helps consumer-centric brands create innovation strategies, identify growth opportunities and build innovation pipelines.
Idean (Palo Alto) combines a Scandinavian design ethos with a Silicon Valley mindset. Its strategic design and user experience capabilities complement the geographic coverage of Backelite, the Group’s mobile-first digital design agency.
Itelios (Paris) is also a leading provider of the Salesforce Commerce Cloud and focuses on designing, developing and implementing ecommerce projects that enable a unified customer journey across online and in-store experiences.
Oinio (Munich) has quickly become one of the major European players in the consulting and deployment of Salesforce cloud-based CRM and digital marketing solutions.

Engaged, diverse, responsible

With increasing agility and diversity, Capgemini employees consistently pool their talents to drive and shape the technological and business transformations tied to our success. These individuals are our most valuable resource and our greatest source of strength. Their everyday actions and dedication to their work embody our commitment to corporate responsibility and sustainability.

53,000 recruitments in 2016, of whom 40% young graduates

With increased agility in our operations, working methods, and interactions, Capgemini is improving its ability to attract, and develop talent.

In this new era of human resources, we have embraced the culture of immediacy and ubiquitous conversations. The result is a “straight-talking” campaign rooted in the daily lives and real experiences of employees that allows all potential candidates to form their own opinion of the company. It is precisely why we are stepping up local initiatives to encourage Capgemini employees to share their experiences on social media. India, for example, has set up a community of one thousand brand ambassadors who relay information about the company to their networks from their smartphones. In the United Kingdom, a similar initiative put us on the map as one of the “50 Best Places to Work” according to the leading employee review site, Glassdoor.

Fostering responsibility

735,000, it is the number of direct and indirect beneficiaries of our outreach initiatives around the world in 2016, particularly in India.

Video Fostering responsibility
Talents des Leaders de Capgemini
6

Capgemini leadership qualities

Leadership is crucial to commitment. That is why we encourage all our employees to pioneer ideas, manage teams, and spearhead projects. In 2016, we clearly reasserted the intangible assets that form the foundation of our leadership model. La Niaque (for “fighting spirit” in French) to do our best with the energy that drives us forward; "Business builder" to build sustainable partnerships with our clients; "Profit shaper": to do more than reap today’s rewards; "People developer" to support our colleagues and help them grow. "Active connector" to use all Capgemini resources to deal with issues which are far too complex to handle alone; and "Agile player" to leverage all sources of speed, efficiency, and simplicity.
Femmmes au sein du programme de Capgemini
41%

women participants in our Game changers fast-track career program

Technology remains a very male-oriented sector and the percentage of women in the company is still too low (30.3% of our headcount), especially in management and executive positions. The proactive approach of Capgemini’s senior management led to several key milestones in 2016: a female manager was promoted in the majority of executive committees for our seven strategic business units. Programs like Game Changers give our high-potential employees around the world a chance to put their ideas to the test through disruptive, trailblazing projects.

2016
in figures

Revenue breakdown

By business
By sector
By region
By business By business
By sector By sector
By region By region

Digital and Cloud offerings

+29% revenue growth between 2015 and 2016
30% of the revenues 30% of the revenues

Revenues

+5.2% growth in constant currency
between 2015 and 2016
12.5Md€ in 2016 12.5Md€ in 2016

Operating margin

11.5% of revenue in 2016 vs 10.6% in 2015
Strong progression: +0.9 point Strong progression: +0.9 point

Free cash flow

1,071M€
1.071M€ en 2016 1.071M€ en 2016

193,077 employees in more than 40 countries as of December 31, 2016

64 726 employees in Europe, 101 317 employees in Asia-Pacific, 16 895 employees in North America, 8 589 employees in South Americ 64 726 employees in Europe, 101 317 employees in Asia-Pacific, 16 895 employees in North America, 8 589 employees in South Americ

53,000 new recruits in 2016
of whom 40% young graduates

© 2012
© Claude Tétot, "Sans titre 19"
Download the 2016
Annual Report
PDF (8Mb)
Capgemini turns 50
Capgemini 50 ans
Explore the future of technology with
« Beyond the Buzz »
Beyond the Buzz

Thanks to the artists !

Capgemini continues its annual tradition of celebrating art this year by inviting artists to contribute to its annual report. This year’s edition features work by Bruno Rousselot, Claude Tétot and Russell Tyler, on show at the Ceysson & Bénetière gallery in Paris.

See the gallery's website