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Capgemini
Capgemini

IT / Consulting and IT Services

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Risks

1. Increased competition: As the IT industry continues to evolve and become more competitive, the ability for Capgemini to attract and retain clients has become increasingly difficult, representing a key threat to the company’s long-term success.


2. Outsourcing concerns: Since a large portion of Capgemini’s services involve outsourcing, the company is at risk of not being able to control the quality of its services as outsourcing elements reliant on third-party vendors.


3. Cyber security concerns: Capgemini operates in an industry that’s highly exposed to cyber security risks, particularity since the company provides services in areas such as data management and cloud computing.


4. Low margins: Profit margins in the IT services industry are typically very low, making it difficult for Capgemini to remain profitable over the long term.


5. Technology changes: The IT services industry is heavily reliant on technology which is rapidly changing. As a result, Capgemini must invest heavily in researching and developing new technology solutions to meet customer needs.


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