Cap Gemini's twin challenge

Article Abstract:

The huge success of the French computer software and services firm Cap Gemini Sogeti can be attributed to its aggressive acquisitions-based program. The company reported turnover of 1.5 billion European currency unit in 1991 making it the fourth largest software and services company worldwide. Cap Gemini has operations in 16 countries and, together with its affiliated companies, dominates the French, Swedish, Dutch, Germany and UK markets. However, although the company has been widely successful, it has not totally escaped the adverse effects of the recession and the evolution of the computer industry. In 1991, for the first time after 24 years of growth, Cap Gemini's profits declined by 10%. In response to this development, founder and head Serge Kampf announced his plan to consolidate the numerous businesses Cap Gemini has acquired over the years into a coherent global company that can offer a wide range of services in Europe, the US and Japan.

Prepackaged software, Computer integrated systems design, Computer programming services, Computer maintenance & repair, Management, Computer software industry, Software industry, Computer services industry, Information technology services industry, Acquisitions and mergers, Cover Story, Capgemini France

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What single market?

Article Abstract:

National and regional monopolies in the EC are still firmly in place despite the creation of the single market. Notwithstanding the steady stream of directives and regulations, free competition remains a distant possibility in many markets, most notably in postal services, rail and air transport, voice telecommunications and energy. The EC's competition directorate, under Belgian commissioner Karel Van Miert, has been attempting to break these monopolies. However, its deregulation efforts are being hampered by various factors such as the Maastricht treaty ratification issue, and the UK's political and economic problems. There are also fears that some governments, including France, will push for the retention of monopoly privileges based on the argument that state companies need to be strong enough to provide public services.

Evaluation, Europe, International trade, European Union, Single European market, Free trade, Monopolistic competition, European Community

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