Broad and diversified service offering, geographically diversified revenues, and solid client bases; Prudent financial policies and solid liquidity; and Recent improvement in margins, which should be sustainable thanks, in part, to an improving industry outlook. Modest margins, although they are expected to continue to improve, to in line with that of the outsourcing division; Ongoing restructuring needs; and Strong competition, which is likely to maintain margin pressure across the whole IT services industry. The ratings on France-based Cap Gemini reflect the intensely competitive nature of the IT services industry, which results in low margins and continued capacity adjustment costs for the company. These factors are partly offset by Cap Gemini's broad and diversified capabilities in IT services--a relatively credit-friendly segment
