In a progress report on its as yet unfinished Genesis reorganisation programme, which has cost about $100m so far, Cap Gemini Sogeti SA had few positive results to report. The company says Genesis brought in some $62m last year in the extra sector sales it was aiming to get, and that it should bring in twice that this year. In the meantime, however, Cap lost major facilities management deals to Electronic Data Systems Corp in the UK (Inland Revenue Service) and Sweden (Kooperativa Forbundet) where it had made acquisitions precisely to be able to beat the General Motors Corp firm. Genesis’s main objective was to fill out each of its country operations with a specific sector specialisation. Thus, for example, Cap Gemini concentrated its petro-chemical industry experts in the US, finance and insurance staff in the UK and Ireland, mechanical experts in Germany and telecommunications in the Paris region. Cap Gemini said Genesis also wrought improvements in its sales procedures that increased the percentage of contracts it won in the Ile-de-France region from one in three in 1992 to 75% last year. Cap Gemini could not put a definitive price tag on the reorganisation, which is not expected to be complete until May or June and won’t bring full results until next year. In the midst of its first-ever losses and hesitant reorganisation, meanwhile, Cap Gemini needs fresh capital. In the coming months, it must pay the $170m bill for its year-ago acquisition of Volmac Software Groep NV, which recently reported a 40% drop in its 1993 operating profit. It must also determine where it is going to find another $250m to redeem a series of convertible stocks that come due on February 15 1995.
