Investigating Outsourcing

Feb 18 2010   11:55AM GMT

How can Capgemini’s outsourcing do well as consultancy and IT services do badly?

KarlFl40 Profile: KarlFl40

IT services

Cagemini’s financial results were typical of recent announcements, in that the rescession has hit sale and profits. But the sting in the tail, albiet a pleasant one, was that its outsourcing business did well and limited the damage.

I couldn’t help getting confused when I read the results. How could outsourcing do well and IT services and consultancy do badly at the same time?

Us journalists always think making results confusing is deliberate and attempt to hide something. But we are like that by nature so it is not the case I am sure.

After speaking to Capgemini it became clearer. So just to prevent confusion outsourcing to Capgemini is IT outsourcing, BPO and KPO.

While Technology services are implementations and Consulting is traditional management/business consulting. But neither are outsourcing.

This makes it clear because there were obviously less implementation projects has companies held of spending. Similarly business consultancy is probably less required when customers are just trying to steady the ship.

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