Capgemini Group today announced a significant shift in its delivery of application services projects with the creation of a new global Application Lifecycle Services capability. This new service line will help clients manage the entire lifecycle of applications from development to maintenance, including testing, implementation and optimization. With the cost of application management continuing to represent a heavy burden, and sprawling application landscapes becoming increasingly complex, organizations want to derive significant cost savings and improved flexibility by devolving the management of business applications. Capgemini is combining its application development and outsourcing capabilities to help clients revitalize IT as a source of business innovation and differentiation and be more competitive.
The new service line will be supported by15,000 specialists across the globe, including half of Capgemini’s 20,000 strong workforce in India, which is the core of the Group’s Rightshore® delivery model. As part of this new initiative, Capgemini will retrain 5,000 application consultants, engineers, architects and managers in the next six months, in a spectrum of new methodologies and techniques to drive simplification of the application landscape. Based on a powerful Application Lifecycle Service Framework which is developed from hundreds of best practices, the new approach will aim to simplify architecture and portfolio principles as well as enable stronger IT governance.
The new global service line will offer services in all major geographies and for all mainstream technology platforms. Clients can expect to achieve significant cost savings when applications are maintained and further developed by Capgemini throughout their entire lifecycle. With this new global service line, Capgemini is aiming for a leadership position in the fast-growing application lifecycle segment.
“More clients are entrusting the full lifecycle management of their IT applications to us as they adjust to today’s demanding business environment. To cater to this, we decided to combine the pieces of our business which address innovative applications with the ones that oversee the ongoing maintenance of services,” commented John Brahim, General Manager of Capgemini’s new global Application Lifecycle Services and member of the Global Management Board of Capgemini. “We increasingly see organizations reach a point where the budget for maintaining and stabilizing the existing IT landscape is dwarfing the investments in new initiatives. As a result, enterprises no longer prefer to self-manage this complex and cumbersome application process.”
Large and global organizations are showing the strongest demand for such services, with telecommunications, manufacturing, public and financial services showing the greatest interest. According to Pierre Audoin Consultants (PAC), a leading a global market research and strategic consulting firm based in France, the worldwide market for application maintenance alone already represents a €20 billion market, with Europe and North America forming the two largest parts. In addition, the latest Gartner market forecast for combined Application software support and Application development in 2010 indicates a worldwide market size of €88.2 billion.1 To tap into these markets, Capgemini has developed a powerful set of application lifecycle instruments, including collaborative governance formats; architecture frameworks; development enablers and accelerators; and continuity and de-commissioning technologies.
A good example of provision of full lifecycle application services, in a secure environment, is Capgemini’s collaboration with the UK Ministry of Defence (MOD). John Taylor, MOD’s Chief Information Officer, said: “The DECS2 service has delivered many cost-saving and time-saving efficiencies at the MOD over the last eight years and I am pleased that Capgemini, who have consistently exceeded the very high service levels that we demand, will continue to work with us in the years to come. I also look forward to continuing the highly collaborative partnering arrangement with Capgemini that has delivered real innovation in the way we work, both internally and with our defence and other industry partners.”
The creation of the global Application Lifecycle Services capability represents the second stage of Capgemini’s major growth initiative, known as ‘Business as Unusual’ which was unveiled on November 5, 2009. It and launched with a major investment in the Group’s Business Information Management capability. Through this series of strategic initiatives, Capgemini aims to generate €800 million of additional bookings in 2010. For more information about Capgemini’s Application Lifecycle Services portfolio, please visit: /services-and-so lutions/challenges/application-lifecycle -services/overview/
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business Experience. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 30 countries, Capgemini reported 2008 global revenues of EUR 8.7 billion (approximately USD $12.74 billion) and employs 90,000 people worldwide.
Rightshore® is a trademark belonging to Capgemini.
1: Gartner Inc: “IT Services Market Metrics Worldwide: Forecast Database,” Kathryn Hale, Jason Harris, Freddie Ng, Chiaki Morikawa, December 1, 2009
2 Capgemini UK plc runs the Defence Electronic Commercial Service (DECS) for the UK Ministry of Defence. Provided as a managed service from a Capgemini secure data centre in the UK, DECS is the primary electronic interface between the Ministry and the defence industry, facilitating collaboration on complex defence projects as well as efficient electronic purchasing of regular supplies. Since its implementation by Capgemini at the MOD in 2000, DECS’ annual transaction volumes have grown to 2.6 billion in 2008. With the expansion of the DECS applications into areas such as travel, remote Internet Access to Shared Services (IASS) and other shared services, the number of DECS users now totals over 28,000 MOD civilian and military personnel in the UK and around the world, with over 800 trading partners and three other government departments.