Capgemini, Outsourcing, Profits
Capgemini out of the red in 2005
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Capgemini, the French IT outsourcing services firm, has posted net profit of EUR 141 million for FY 2005, against the net loss of EUR 534 million in 2004. The operating profit of the company was EUR 214 million, with an operating margin of 3.2 percent. The total revenue of the company increased from EUR 6.2 billion in 2004 to EUR 6.9 billion in 2005. In 2005, an estimated EUR 2.8 billion worth of contracts were signed by Capgemini.
A company spokesperson attributed the positive results to an improved resource utilization rate and a 12 percent reduction in operating costs. The European operations of the company grew by around 9 percent. The surge was led by gains in consulting and technology services.
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