Capgemini Phasing Out the Altran Brand and Launching Capgemini Engineering
Capgemini is phasing out the Altran brand and is launching Capgemini Engineering. Capgemini Engineering will group the activities of Altran and Capgemini Digital Engineering Services (DEMS).
DEMS itself grouped several ER&D activities across the former iGATE and Euriware, and also Sogeti Hi-Tech. In Capgemini’s terminology, Capgemini Engineering is a Global Business Line (GBL). A GBL goes beyond the CoE notion. It includes delivery and HR. CoEs usually only include activities such as pre-sales, project solutioning, and portfolio management.
Capgemini has a track record in keeping units that can overlap with other entities. A good example is Sogeti that provides infrastructure, application, and ER&D services. Sogeti has a background in staff augmentation. However, it has largely transitioned to project services and leads the group to offer testing services.
Having said, we think Capgemini Engineering’s GBL is temporary. Therefore, Capgemini will work to merge legal units and harmonize HR over time. As a result, this will reduce the operational complexity of operating across several subsidiaries. We expect Capgemini to complete this simplification and merger effort in two years. This simplification effort and the launch of Capgemini Engineering is a good step in the right direction, despite the controversial phase-out of the well-known Altran brand.
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