(By Richard Holway 8.00am Thurs 5th Nov 09) Logica’s results yesterday (See Logica “stable”) now look pretty good compared with Capgemini’s IMS for the three months to 30th Sept 09. Rather than my words, let me quote the opening paragraph of Capgemini’s release:“The decline in the economic environment in Q3 fuelled a sharp reduction in corporate IT spending. Against this challenging backdrop, Capgemini reported revenues of €1.946b, down 9% on Q3 2008 (constant currency and like-for-like)” .
These results were much worst than expexted (last night the 'concensus' was a 3% decline) and Capgemini shares slumped 5% on opening this morning.
In other respects, the Capgemini results mirror not just Logica’s results but the general trends we report so often here at TechMarketView:
- Outsourcing was, yet again, the redeeming feature; recording ‘just’ a 2.7% decline.
- Consulting and Professional Services were the worst hit
- UK was the best performing region – growing 1.5%. France fell 9.9% and North America down 7.3%.
The immediate outlook looks grim too with “a similar decline to be recorded in Q4” although “there are signs that activity is stabilizing and even picking up in some market segments”.
We will comment further when more detail is forthcoming. But anyone looking for signs of recovery in the mainstream SITS areas outside of outsourcing will be sorely disappointed by the results from one of the top European bellwethers.
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