Broad and varied IT service offerings, geographically diversified revenues, and a solid client base. Established presence in the more predictable outsourcing segment. Highly competitive and fragmented IT services industry. Exposure to economic cycles and clients' IT budgets. Although gradually improving, operating margins trailing behind principal U.S.-based or Indian peers. Moderate debt leverage. Prudent financial policies and strong liquidity position. Strong free operating cash flow generation. The positive outlook reflects our expectation that Capgemini will generate constant currency revenue growth of 2%-3% in 2017-2018 (subject to exchange-rate headwinds), while improving its adjusted EBITDA margin to 15% in the same period. We also expect that the company will maintain its strong liquidity position including cash balances, consequently improving its adjusted debt-to-EBITDA ratio
