CAP GEMINI ANTICIPATES CONTINUED GROWTH AND ALLIANCES IN 1999.

• Position: Company Business and Marketing

Following a somewhat chaotic 1999, Cap Gemini, European leader in computer services, is anticipating a year of sustained growth in 2000 and plans to conclude negotiations with Ernst and Young, Cisco and Mannesmann. Cap Gemini saw net profits rise 41.5% last year to Euro 266 million, representing 6.2% of turnover. Affected by preparations by a majority of clients for the 2000 rollover, turnover increased by only 9% to Euro 4.31 billion. Over the last five years, Cap Gemini has succeeded in improving its operating margin by 5 points to 10.9%, while net profits have risen from Euro 8 million in 1995 to 266 million. The group is anticipating a steady improvement in activity throughout 2000, drawn by its strong position in the electronic commerce sector, in client relations management (CRM) and supply-chain management. Moreover, information management activities should recover with integrated management packages yielding important new licences. The group is anticipating a growth rate a little below 20% in 2000, with average annual growth of slightly more than 10%.The group also plans to take full advantage of the current glut of alliances to benefit from the rise of electronic commerce. It has already announced a partnership with the American group Sun, and has begun talks with the German Mannesmann...