Broad and diversified services, geographic areas, and client bases--key success factors in the IT services and consulting industry; Long-term demand growth prospects despite current softness in the market; and Conservative financial profile, supported by prudent financial policies, ample liquidity, and strong EBIT-to-cash conversion potential. Reliance on relatively volatile projects and consulting services, as opposed to contract revenues, and a weak presence in outsourcing and the public sector segment have caused a decline in sales and profitability that is higher than peer average; Substantial capacity adjustment costs that have weakened debt measures since 2002; and Industry consolidation, which may entail integration risks, although the group is expected to continue funding acquisitions carefully. The rating on Cap Gemini continues to reflect the
