Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

<ul>
<li>BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   </li>
<li>We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   </li>
<li>The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.</li>
</ul>


BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   
We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   
The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.


<ul>
<li>Capgemini's share price dropped by 10% following a below-consensus guidance for FY 2025, highlighting concerns about its underperformance compared to peers and the delayed recovery of the IT services industry.   </li>
<li>Capgemini's revenue mix, with significant exposure to manufacturing in Europe, limits its growth compared to offshore competitors like TCS, Infosys, and Cognizant, which are benefiting from recovery in financial services.   </li>
<li>Despite AI creating high expectations, its impact on bookings remains limited, causing delays in decision-making; however, AI presents significant opportunities in IT services as it drives demand for business transformation.</li>
</ul>


Capgemini's share price dropped by 10% following a below-consensus guidance for FY 2025, highlighting concerns about its underperformance compared to peers and the delayed recovery of the IT services industry.   
Capgemini's revenue mix, with significant exposure to manufacturing in Europe, limits its growth compared to offshore competitors like TCS, Infosys, and Cognizant, which are benefiting from recovery in financial services.   
Despite AI creating high expectations, its impact on bookings remains limited, causing delays in decision-making; however, AI presents significant opportunities in IT services as it drives demand for business transformation.


Capgemini SE (CAP FP): A Question of Revenue Mix

Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

<ul>
<li>Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ Insights published over the past two weeks on Smartkarma</li>
<li>In this cut, we review the global focus on critical minerals, how ASEAN's digital economy can grow amidst political uncertainty, and how IT services have fared with AI</li>
<li>Want to dig deeper? Comment or message with the themes you’d like to see highlighted next</li>
</ul>


Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ Insights published over the past two weeks on Smartkarma
In this cut, we review the global focus on critical minerals, how ASEAN's digital economy can grow amidst political uncertainty, and how IT services have fared with AI
Want to dig deeper? Comment or message with the themes you’d like to see highlighted next


Curator's Cut: Critical Minerals' Rise, SEA's Digital Promise & IT Services in Flux

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>Capgemini’s $76.50 all-cash acquisition of WNS has cleared all approvals; only court sanction remains.</li>
<li>Scheme court hearing set for 9 October; settlement expected around 16 October 2025.</li>
<li>With a 0.25% gross spread, this is now a low-risk, near-cash arbitrage position.</li>
</ul>


Capgemini’s $76.50 all-cash acquisition of WNS has cleared all approvals; only court sanction remains.
Scheme court hearing set for 9 October; settlement expected around 16 October 2025.
With a 0.25% gross spread, this is now a low-risk, near-cash arbitrage position.


Capgemini–WNS: Locking in the Final Basis Points

Thematic (Sector/Industry)

<ul>
<li>The US has imposed a USD 100,000 fee on H-1B visa applications, aiming to prioritise high-skilled, high-wage applicants. The measure is expected to shift offshore firms further toward local hiring.   </li>
<li>Capgemini and Atos, the only European firms with H-1B activity, are less reliant on US-based visas. Limited exposure means the new fee would have only a modest impact on costs.   </li>
<li>While visa-related changes pose limited risk to European players, greater disruption could come from the rise of agentic AI and the uncertain trajectory of anti-outsourcing legislation like the HIRE Act.</li>
</ul>


The US has imposed a USD 100,000 fee on H-1B visa applications, aiming to prioritise high-skilled, high-wage applicants. The measure is expected to shift offshore firms further toward local hiring.   
Capgemini and Atos, the only European firms with H-1B activity, are less reliant on US-based visas. Limited exposure means the new fee would have only a modest impact on costs.   
While visa-related changes pose limited risk to European players, greater disruption could come from the rise of agentic AI and the uncertain trajectory of anti-outsourcing legislation like the HIRE Act.


European IT Services: H-1B Concerns Are Overstated

France

Capgemini offers information technology services. The Company provides mobile software solutions, business process management, outsourcing, cloud computing, finance, consulting, supply chain management, engineering, and other services. Capgemini serves aerospace, defense, automotive, health care, life science, telecom, media, and entertainment industries worldwide.

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Capgemini (CAP FP)

Capgemini (CAP FP): Back to BPO?

BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Gregory Ramirez

Capgemini SE (CAP FP): A Question of Revenue Mix

Capgemini's underperformance and revenue mix limitations raise concerns about its growth compared to offshore competitors, despite high...

Gregory Ramirez

Curator's Cut: Critical Minerals' Rise, SEA's Digital Promise & IT Services in Flux

In this cut, we review the global focus on critical minerals, how ASEAN's digital economy can grow amidst political uncertainty, and how IT...

Pranav Rao

Capgemini–WNS: Locking in the Final Basis Points

Capgemini’s $76.50 cash acquisition of WNS is nearly complete. With all approvals in place and court sanction imminent, the 0.25% spread offers a...

Jesus Rodriguez Aguilar

European IT Services: H-1B Concerns Are Overstated

US imposes $100,000 fee on H-1B visas to prioritize high-wage applicants, shifting offshore firms towards local hiring. European firms like...

Gregory Ramirez

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Capgemini (CAP FP): Back to BPO?

​BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Gregory Ramirez

Capgemini SE (CAP FP): A Question of Revenue Mix

​Capgemini's underperformance and revenue mix limitations raise concerns about its growth compared to offshore competitors, despite high...

Gregory Ramirez

Curator's Cut: Critical Minerals' Rise, SEA's Digital Promise & IT Services in Flux

In this cut, we review the global focus on critical minerals, how ASEAN's digital economy can grow amidst political uncertainty, and how IT...

Pranav Rao

Capgemini–WNS: Locking in the Final Basis Points

Capgemini’s $76.50 cash acquisition of WNS is nearly complete. With all approvals in place and court sanction imminent, the 0.25% spread offers a...

Jesus Rodriguez Aguilar

European IT Services: H-1B Concerns Are Overstated

​US imposes $100,000 fee on H-1B visas to prioritize high-wage applicants, shifting offshore firms towards local hiring. European firms like...

Gregory Ramirez

BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Capgemini's underperformance and revenue mix limitations raise concerns about its growth compared to offshore competitors, despite high...

US imposes $100,000 fee on H-1B visas to prioritize high-wage applicants, shifting offshore firms towards local hiring. European firms like...