Broad and diversified service offering, geographically diversified revenues, and solid client base. Opportunity to leverage off-shore capabilities. Prudent financial policies, solid liquidity, and adequate cost control. Growing presence in more predictable outsourcing segment. Highly competitive environment. Exposure to economic cycles and IT budgets. Ongoing restructuring needs. The ratings on France-based Cap Gemini S.A. reflect the company's broad and diversified capabilities in IT services, conservative financial policies, solid off-shore base, and adequate cost control. Partially offsetting these factors is the cyclical and intensely competitive nature of the IT services industry, which results in low margins and frequent capacity adjustment costs. Cap Gemini's first-half 2009 results still showed relatively good resistance to the current severe economic downturn; organic revenues contracted 2.2% year
