Capgemini was founded in 1967 in Paris, France as a data processing and enterprise management firm. Today, Capgemini is a global consulting firm with over 357,000 employees providing technical solutions in cloud, data, AI, engineering, and platform support to federal and commercial customers.
Capgemini’s U.S.-based Government Solutions sector was created in 2002 and it is based in McLean, Virginia. While their federal facing business is a small fragment of the overall business, they are growing and succeeding in areas where they were previously an unknown. Let’s take a look at how this global consulting firm may be creeping up as a competitor to watch out for in the U.S.
Capgemini’s Primary Federal Customers
Capgemini’s federal footprint mainly spans across federal civilian agencies. Most notably, Capgemini has consistently maintained a strong presence in both the Immigrations and Customs Enforcement (ICE) agency and the U.S. General Services Administration’s (GSA) Office of the Chief of Information Officer (OCIO). Included below are recent highlights from select top customers.
- U.S. Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), ERO IT Upgrades and ATD Enhancements – In September 2021, Capgemini was awarded a three-year, $26 million ceiling value contract to provide the Immigrations and Customs Enforcement, Enforcement and Removal Operations (ERO) IT upgrades and Alternatives to Detention (ATD) enhancements. ERO’s ATD program uses technology and case management protocols to monitor noncitizen compliance with final orders of removal or with release conditions while their immigration proceedings are pending on the non-detained docket.
- U.S. General Services Administration, Office of the Chief of Information Officer (OCIO), IT Operations and Maintenance (O&M) and Development Support Task Order – In September 2019, Capgemini was awarded a four-year, $65 million ceiling value task order to provide operations and maintenance (O&M) and development support services for the Automated Advanced Acquisition Program (AAAP), and Salesforce implementation and O&M services. AAAP allows offerors to submit office space to the government in response to a generic request for lease proposals, before or after the government publicizes a requirement. This is a follow-on to a task order awarded in October 2016.
- U.S. Department of Treasury (TREAS), Internal Revenue Service (IRS), Microsoft Premier Support Services (MPSS) – In March 2021, Capgemini (via the acquisition of VariQ) was awarded a three-year, $112 million ceiling value contract to provide Microsoft Premier Support Services (MPSS), Microsoft Consulting Services (MCS) and Commercial Off The Shelf (COTS) software consulting services which are used to provide IT architecture enabling modernization.
- U.S. Department of Homeland Security (DHS), Cybersecurity & Infrastructure Security Agency (CISA), IP Gateway O&M– In September 2019, Capgemini (via the acquisition of VariQ) was awarded a five-year, $33 million ceiling value task order to provide operations and maintenance, and migration support services for the Infrastructure Protection (IP) Gateway to a cloud-based hosting environment.
- U.S. Department of the Army, Enterprise Cloud Management Agency (ECMA), Enterprise Common Shared Services (ECSS) – In January 2022, Capgemini was awarded a two-year, $46 million ceiling value contract to modernize, transform, and grow cARMY, the Army’s Cloud Common Shared Services environment, across multiple cloud environments, classifications and geographic locations. Capgemini will support and enable the Enterprise Cloud Management Agency (ECMA) to help make data-driven decisions and decrease time-to-filed and to promote cARMY’s adoption of cloud technologies and bolster AI/ML programs to deliver mission-readiness in new digital and physical environments. Prior to 2022, Capgemini had no meaningful customer footprint with the Army, indicating entrance into the Army and likely broader DoD market.
Investments in Innovative Facilities
Capgemini is expanding its investments in innovation hubs and facilities. In February 2023, Capgemini announced the opening of a 5G Solutions Center in San Francisco at the Capgemini Applied Innovation Exchange (AIE). This center bridges end-to-end 5G solutions with a cutting edge 5G connectivity environment and complements the company’s 5G Labs located in Europe (in Paris, France; and Fundão, Portugal). The center will support Network Equipment Providers (NEPs), Communication Services Providers (CSPs), enterprises, and industrial players to accelerate deployment of next-generation services and solutions.
Building off its commitment to provide facilities specializing in digital transformation, Capgemini opened up its Nashville Technical Center in January 2022. This center provides cloud computing, AI, and ML to meet the growing need for technical and operational services. The Nashville Technical Center employs approximately 1,500 people.
Although these investments were made through the commercial side of Capgemini, Capgemini Government Solutions will likely articulate a “reachback” capability into the broader Capgemini US business to leverage additional capabilities, such as these centers.
Acquisitions to Expand Customer Footprint
Most significantly in recent years, Capgemini acquired acquired VariQ in 2021. This acquisition of VariQ expanded services in software development, cybersecurity and cloud services for U.S. federal government departments and agencies. This acquisition is particularly noteworthy because VariQ also brings its acquisition of Rivet Logic, expanding Capgemini’s digital transformation capabilities in the areas of UI/UX, video solutions, mobile and database modernization services in the cloud. Capgemini’s strategic investment in VariQ was to expand their digital capabilities and offerings to U.S. Federal agencies, such as the Internal Revenue Service (IRS) and the Cybersecurity and Infrastructure Agency (CISA), and access to new contract vehicles such as Alliant 2, GSA MAS, IRS Microsoft Premier Consulting Services (MPCS).
The FedSavvy Strategies Takeaway
- While Capgemini has seen a consistent increase in customer funding from ICE and GSA, they have demonstrated an initial entry into the defense market to diversify their customer portfolio.
- The acquisition of VariQ expanded Capgemini’s cloud, AI, engineering, and cyber services which expands a credible offering of services
- Building on the VariQ acquisition, Capgemini’s customer access expanded into CISA and the IRS and they gained important contract vehicles by which they can pursue more opportunities altogether.
- Capgemini’s Army ECMA win suggests their ability meet the security requirements of a DoD operating environment, which may qualify them in pursuing new customer markets within the U.S. Department of Defense.
- Capgemini’s investments in new facilities and IT hubs highlight their commitment to building capabilities in emerging technologies like 5G and digital transformation, which can be leveraged in their pursuits to enhance their solution.
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