Team Members-

INTRODUCTION:
Capgemini India serves as a world-class offshore centre through its unique
Rightshore Strategy to serve global customers and Indian markets through its Local
Business Services arm. A pioneer in the Indian IT industry, Capgemini is a growing
hub for innovation, which is being achieved through COEs in various sectors. Having
its footprints globally, let us discuss the impact of changing political and economic
climate of the world on the company.

Impact of Trump's policies on Capgemini-

With Trumps new executive order, strangulating work-visa programmes, including
the H-1B and L1 visas, all the Indian outsourcing IT firms such as Infosys, Wipro,
TCS etc. are badly hit. The biggest beneficiaries of H-1B visas are Indians,
comprising of 70% of total H-1B approved petitions in 2016.This clampdown has led
to a significant drop in economies of these firms.
Amid concerns regarding a slowdown in globalisation due to Trumps policies,
Capgemini is positive on the outlook. Though the cost and budget will remain under
pressure, the company has its contingency plan against the hiring and visas issues
arising out of the Trumps protectionist policies that would be beneficial to
employees.
The authorities believe that rather than bringing the people to the work, you might
think and discuss with your clients how you bring the work to the people. That
addresses the visa concern, because you dont need to lend resources for the
clients. This will drive Capgemini up in the value chain, as the kind of people who
travel will be premium people, people who are consultants and highly experienced
and skilled. With such plans, company is well positioned to redefine their relevance
locally.

Impact of the rising assertiveness of China-

China The Red Dragon has been extremely aggressive lately and is not shying
away from any form of military or economic warfare with anyone. Its adamant
behaviour on One China policy and militarization of South China Sea has sent
wrong signals all over the world. Capgemini has a strong foothold in China. Eight
plush offices spread over China in Beijing, Hong Kong, Hangzhou, etc. and
workforce of approx. 5000 employs it is one of the leading software companies there.
Capgeminis Approx. 10% revenue comes from emerging markets such as China,
India and Brazil. If the relations between China and world deteriorate it could have
direct effect on Capgeminis Chinese operations.
To make a contingency plan wont be much difficult for Capgemini due to its scale of
operations in India. As Chinese and Indian operations are particularly similar as most
of the projects are BPOs. The BPO operations require minimum level of skill and is
not tacit knowledge. The same template is used worldwide for similar type of clients.
Few people will have to be trained in Mandarin to tackle its existing Chinese clients
and for the rest the operations can be shifted to India and Philippines which is
another growing emerging market IT destination with cheap and skilled workforce.
Even if Capgemini loses its client in China it will impact only 2-3% of its top line
(revenues). That can be easily recovered by engaging a bit more in emerging
markets like India, Brazil, Russia, Saudi Arabia, Taiwan, Philippines, etc.

Impact of the Putin's aggression and rise of sympathetic far right parties
in Europe-
As Capgemini seek to further strengthen its IT operations in response to the
challenging economic environment caused due to the Eurozone crisis and rise of far
right parties in Europe, 65 percent of its top executives plan to implement operational
excellence initiatives designed to establish more value driven and cost effective
operations. IT operations improvement is also a key priority as market volatility
continues to increase the need for a single, consistent view of the end-to-end project
delivery. For Capgemini, Business innovation initiatives is one of strategic priorities
for 2017 as companies seek new ways of strengthening their business operations.
However, as the pessimistic economic outlook forces companies to re-evaluate
priorities and focus on programs that will improve efficiency and save costs, many
continue to face difficulties in implementing project delivery improvement strategies.
Business prioritization remains the main bottleneck, closely followed by limited IT
capabilities. It is clear that with increasing market uncertainty and a higher number of
business priorities, the company is being forced into being more selective in their
investment decisions.
Continued volatility in Europe is severely impacting strategies everywhere, but it
would appear that lessons have been learned from previous periods of political and
economic uncertainty as Capgemini is better prepared for the challenges in the time
to come and have implemented a number of measures to improve visibility, flexibility
and control within their business units. However, it is vital that senior executives and
company management have a shared understanding in order to establish a truly
successful IT firm and maintain competitive advantage.