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Capgemini results rocket as "Booster Plan" is launched
 
 Capgemini has this last
week revealed strong
quarterly revenue
growth, most notably in
the European market but
with the US market also
showing encouraging
signs of growth.
   In its Q1 2005
results announcement,
Capgemini impressed with
quarterly revenues of
€1.7bn, up 19.1%
year-on-year and 3.7 %
on Q4 2004 results. The
announcement marked the
 
  
   
 
 
 
 
 
 
 
 Europe, rising 22%, but
the US market also
produced positive
results posting revenue
growth of 8%. Growth in
outsourcing revenues has
been an important
contributor to the
turnaround success, with
outsourcing revenues now
representing 36% of
revenues versus 28% in
the first half of 2004.
Also encouraging was the
reported improvement in
staff utilisation rates,
 
 now running at 78.6%
compared with 75% in the
year-ago period.
   Alongside the revenue
improvements, Capgemini
have also introduced a
new programme
specifically to
turnaround the
profitability of the US
business.
   The "Booster Plan"
being introduced by
Capgemini's new hire
Pierre Danon (formerly a
senior executive at BT)
 
 is targeting three major
changes in the North
America business: An
optimisation of the use
of internal resources
and a 30% reduction in
subcontractors; strong
leverage of offshore
capabilities and; a
slashing of support and
administrative costs by
30%.
  
 
 third consecutive
quarter of growth for
Capgemini, following a
more difficult period in
the 2003/4 financial
year.
   Revenue growth was
particularly strong in
 
 
EDS to spin off A.T. Kearney
 
 EDS CEO Michael Jordan
has confirmed that the
company hopes to sell A.
T. Kearney by the end of
the year.
   In an interview with
Reuters Jordan said that
he expects to spin off
A.T. Kearney to its
partners, who would seek
financing to take the
company private.
 
  
   
 
 
 
 
 recovering plan.
   Jordan ruled out the
possibility of selling
the business to another
company, saying that a
straight sale will not
work. He said this kind
of business, referring
to A.T. Kearney, cannot
be sold, as it's driven
by key people.
   The price will be
 
 "several hundred
million," he said. Asked
whether it could exceed
$700 million, he said
no.
   EDS bought A.T.
Kearney in 1995 for
about $300 million.
   Jordan, a former
consultant himself, said
he believes the
consultancy would
 
 flourish if officers
owned equity in the
firm. He would like to
give partners ownership
so they can share
profits and better align
their own interests with
the firm.
  
 
    For the last year the
company has strongly
denied media and
analysts' speculations
that the money-losing
consultancy will be sold
as part of EDS'
 
 
So who is the largest interactive consultancy in the UK?
 
 Remember the
e-consulting powerhouses
of the dot-com boom?
Razorfish, Scient,
Lante? You'll recall
these businesses were
 
 all acquired by the US
consultancy SBI and
Company, who then sold
its UK business to
Framfab late in 2003 in
a complicated deal.
 
    Well now Framfab have
gone one step further
with the £12m
acquisition this week of
interactive agency
Oyster Partners - which
 
 the firms claim will
create the definitive
market leader in the UK
market through the
addition of some 130
staff and clients such
 
 as Abbey, BT, NHS and
Thomas Cook.
  
 
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