Is it true that Capgemini Consulting services have announced redundancies? Are they in bad shape?

No they have recruited many consultants in emerging markets, which is not the UK. In the uk they are being laid off as the £ is too expensive. This will apparently change shortly when the housing market sorts itself out so they tell me.

You mean to say that they are hiring people in emerging markets and laying off in UK?? Just like what IBM is planning?

First of all, it is all true. Redundancies have been announced yesterday. They are laying off people in Consulting Services (mainlt Transformation Consulting and FET) due to lack of business. They expect difficult trading condition for Consulting services for the next few months (so they say). Never been particularly good in advisory services anyway...

Are these job cuts just affecting the consulting division? Will there be any impact or job losses in technology or outsourcing?

TS and OS are okay at the moment. The UK business is doing quite well in these areas.My friend tells me that morale in CS is very low and that the changes that have been implemented in january to the CS business have not been well received.

TS and OS are okay at the moment. The UK business is doing quite well in these areas.My friend tells me that morale in CS is very low and that the changes that have been implemented in january to the CS business have not been well received.

FET had a conference call to say there would be redundancies and they would be contacted later on in day to see if individuals were effected! Glad I left!

Hello Yes IT is fine in UK and in India.Reason for IT being fine.....In 1997 - 2003 consultants in the UK outsource all work to India for IT. UK University have very low uptake of IT student, IT used to be job like Doctor or Accountant, these days IT seen as gateway to India, poor job prospect, low pay.Any decent consultant can see that builds India up as emerging market, so consulting moves there same way as IT.You keep the good experienced people, cut the bad performing grads and have a hiring freeze same as IBM.Apparently IT employment in UK for IBM and ACCN is on the up, but most consultant into strategy and cost savings, but this is now moving around in asian markets.A case of you make your bed now you lie in it.Financial houses will folloow soon, already there is much emphasis on the 'Bonus' to ensure your mortgage is paid off in UK.Get into private sector or someone who wont outsource due to customer service, but that will be hard as new black is 'Innovation' and that is not UK.Sorry if this mesage is truthful or hurtful in anyway, but this is a cycle that as a person with 18 years strat/IT experience, I can now recognise.

well my friend (!) happens to be a casualty of this round of redundancies. I believe his story at CG is worth telling as it gives a pretty good idea of the current climate in consulting (an omen for future months?).As a preamble I would like to say that you always got to be wary of one sided stories (hence I am not saying that what he tells me is the holy truth, nor that his interpretation of events is fully balanced) however I know the guy and once I remove the emotional part of his account, I have no reason to doubt what he says.The facts: He is an experienced consultant and has worked with a number of large consulting firms prior to joining CG few years ago'. Always performed and never had any problems. His performance in 2006 was good and this was reflected by a payrise in Jan 2007 and a full bonus (I think he got more than 100%) in March 2007. Now ... all of a sudden he is no good.CG Consulting is doing pretty badly. There are rumours that current trading is 50% of budget and pipeline is very very poor. He tells me that this round of redundancies mainly touches the mid levels (managers) while the VPs and Seniors (the ones that should drive the business... selling) are barely affected. Apparently it is all about utilisation.Well the story is quite clear. As a consultant, you are only good as your utililisation (or sales) figures of the last quarter. However, when the SH*T hits the fan Management hardly ever takes responsibility.By the way, he tells me that the redundancy package is very very poor.

I think CapG have learnt their lesson from a previously buoyant market that turned down and resulted in lay offs. They have to have a cost structure to support the downturn as well as the up. It's a hard call to make but if they cannot support that number of people and the sales are not coming through then it is the right thing. I know someone in there also (not affected by redundancies) and he said that Capgemini Consulting employ about 650 consultants in the UK and they have made 30(ish) redundant. This would not suggest a massive downturn in business for them but a bit of trimming in the offer areas where there does not seem to be as much appetitie as they perhaps expected.

Anon, good analysis!Your numbers also add up... but it is worth noting that CG is laying off Consultants from FET and TC only (2 of their capability units). So, as a first round, 30 out of roughly 200 is quite something.Bear in mind that a large part (very large) of CG consulting business is public sector and recent set backs in that field have hit CG badly. And the future doesn't look any better...

Anon - correct. Although i beleive that this is a first step in being less dependent on PS. However - my friend also tells me that the future looks very bright for CG in PS. In my mind it looks like they are taking action early in the offer areas that are not selling. if you look on this site or on their own site they are still recruiting for other capability units. So in summary, they are moving to a less PS sector dependant business whilst growing the areas that there is market appetite for and trimming those that there isn't. Sounds like good business to me?

Anon, good analysis!Your numbers also add up... but it is worth noting that CG is laying off Consultants from FET and TC only (2 of their capability units). So, as a first round, 30 out of roughly 200 is quite something.Bear in mind that a large part (very large) of CG consulting business is public sector and recent set backs in that field have hit CG badly. And the future doesn't look any better...

Anon, good analysis!Your numbers also add up... but it is worth noting that CG is laying off Consultants from FET and TC only (2 of their capability units). So, as a first round, 30 out of roughly 200 is quite something.Bear in mind that a large part (very large) of CG consulting business is public sector and recent set backs in that field have hit CG badly. And the future doesn't look any better...

Anon - correct. Although i beleive that this is a first step in being less dependent on PS. However - my friend also tells me that the future looks very bright for CG in PS. In my mind it looks like they are taking action early in the offer areas that are not selling. if you look on this site or on their own site they are still recruiting for other capability units. So in summary, they are moving to a less PS sector dependant business whilst growing the areas that there is market appetite for and trimming those that there isn't. Sounds like good business to me?

I left Cap recently after having worked there for several years.The current problems of their consulting practice are home made and I personally think the future for CG consulting is not too bright. 1. CG failed to get into the private sector and is now heavily dependent one 2-3 public sector clients. When one of them effectively stopped buying cg consulting services in January all hell broke loose. Those who have been there for a few years were expecting this. If CG had been my consulting client, i would have told them that they are absolutely cray to rely on one sector only and on two clients in that sector.2. most of the heavy-hitters on senior level have left and gone back into the big 4 - and they have not been replaced adequately. only very few people left at cg consulting who can actually have a conversation on CXO level.cheers

Yep, we're losing what few good people we had. Soon I'll be jumping ship too! Pay is crap at CG. This is due to poor charge out rates.You can't increase your charge out rate until you have quality people to charge out. Quality people are leaving for better pay, leaving the less able ones behind. It's a bad cycle.

What is happening at Capgemini? Every day my inbox is bombarded with people leaving. On top of the redundancies it seems like others are leaving through choice. Rats fleeing from a sinking ship?

Yep, fleas on a dog, I got out way early :)