CPM Braxis Capgemini to grow in double digits after merger - CEO

Tuesday, January 11, 2011

Brazilian IT services firm CPM Braxis anticipates double-digit growth this year following its acquisition by French technology services consultancy Capgemini, CEO of CPM Braxis Capgemini, Jose Luiz Rossi, told BNamericas.

"The merger has been great for us and is boosting our capability to work with new clients in the country that wouldn't have seen us as an option before," he said. "For Capgemini, we can help serve global clients looking at Brazil's market, since the country is growing quite fast. Before, they had problems serving these clients."

The integration locally was "quite easy," according to Rossi, as Capgemini moved its team of some 150 into CPM Braxis' nearly 6,000-member staff, the process of which took only a month. Earlier this month, the companies announced the unification of the brand names in Brazil.

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"Our goal was to grow the Capgemini brand, and eventually we will drop CPM Braxis from the name," he said. "[CPM Braxis] is very strong in the domestic market, with about 80% of our clients from local enterprises and 20% from global companies. Other companies in the IT services market generally have a 50-50 split."

Capgemini's global business process outsourcing (BPO) unit, however, remains independent, and will not involve CPM Braxis.

CPM Braxis maintains revenues in the ballpark of 1bn reais (US$592mn), Rossi said without providing an exact figure, adding that 95% of the company's revenues come from a strong Brazilian IT market.

"I think the market will continue to grow much stronger than the GDP," he said. "I talk to all of my colleagues and competitors, and nobody thinks we will see any slow down."

As for its growth plans, CPM Braxis continues to focus on organic aggrandizement within the domestic market, Rossi said. But "buying companies is not out of the question," and the company is also keeping an eye on opportunities for international expansion.

"Capgemini is already well-established in several Latin American countries, such as Argentina, Mexico and Chile," he said. "We have some countries together on a Panamerican basis, and this is an important aspect from our view."