Capgemini says it plans to do more R&D work out of India

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Capgemini Group, a French information technology services firm with half of its global workforce in India, is planning to make the country its “backbone” by doing more research and development (R&D) work out of India.

Capgemini acquired Bengaluru-based IT services firm iGate Corp. in July for around $4 billion (Rs.26,500 crore) in cash, creating an entity with a combined revenue of $14 billion.

According to Sanchit Vir Gogia, Chief Analyst and Chief Executive Officer at Greyhound Research, an independent IT & telecom research and advisory firm, the acquisition of iGate will push Capgemini’s overall growth as it complements the existing business of the group apart from helping create new opportunities.

“After the iGate acquisition, what (Capgemini) they do realize is that the overlaps (in terms of their clients and businesses) are very little. They are very complementary companies, and it allows them to do a lot of cross-selling. So, when you do a lot of cross-selling and collaboration between a lot of accounts, it creates a new set of opportunities,” Gogia said.

“Investing in India would help in improving margins and deal a lot more with the digital opportunities, specially around big data and analytics, as well as expand on the back of its iGate acquisitions,” he added.

Source: Live Mint

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