Broad and diversified service offering, geographically diversified revenues, and solid client base Prudent financial policies and solid liquidity Good revenue growth Margin weakness in the outsourcing division Ongoing restructuring needs Highly competitive environment The ratings on France-based Cap Gemini S.A. reflect the intensely competitive nature of the IT services industry, which results in low margins and frequent capacity adjustment costs. These factors are partially offset by Cap Gemini's broad and diversified capabilities in IT services--a relatively credit-friendly segment of the technology sector--the company's conservative financial policies, and its improving operating and financial track record. Cap Gemini has gained significant market share over the past two years. In second-quarter 2007, revenues grew by 9%, year on year, excluding foreign exchange and
