Broad and diversified service offer, geographically diversified revenues, and solid client base. Opportunity to leverage offshore 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 Standard&Poor's Ratings Services opinion of the company's broad and diversified capabilities in IT services, conservative financial policies, solid offshore base, and adequate cost control. Partially offsetting these factors, in our view, 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 revenues fell 6.9% year on year in the first
