The Résumé
Capgemini is a French multinational IT consulting company. Revenue: €22.5 billion. Employees: 340,000+. Headquarters: Paris. Listed on Euronext Paris.
What they tell you: "We are a global leader in consulting, technology services, and digital transformation."
What they don't tell you: They've been sued for data breaches, lost £117 million on a hospital IT system, been investigated for tax fraud, laid off hundreds of Australian workers, and consistently rank among the worst employers in the IT industry.
This is the complete dossier.
Part 1: The Data Breaches
The 20GB Catastrophe (September 2024)
On September 12, 2024, a threat actor using the alias "grep" posted on BreachForums — one of the internet's most active cybercrime marketplaces — claiming to have compromised Capgemini's systems.
What was stolen: - 20 GB of sensitive data - Source code - Credentials and password hashes - Private keys and API keys - Employee information - T-Mobile virtual machine logs
Capgemini's response: Declined to comment to multiple media outlets. Never formally confirmed or denied the breach.
The irony: This happened just two months after Capgemini won a £574 million UK government contract to run HMRC's legacy tax systems.
The Razer Data Breach (2020)
Gaming company Razer discovered a cybersecurity breach that exposed personal information of approximately 100,000 customers. Order details and shipping information were leaked.
The cause: A security misconfiguration in an IT system that Capgemini recommended and managed for Razer.
The lawsuit: Razer sued Capgemini for US$7 million in damages, including: - US$6.85 million in lost profits from their online store - Unquantified losses from a rejected digital bank licence application
Capgemini's defence: They tried to blame "a new IP address" for the breach. Experts appointed by both companies rejected this explanation.
The verdict: Razer accused Capgemini of "shifting blame and failing to take responsibility."
Part 2: The Project Failures
NHS Scotland: £117 Million Disaster
Capgemini was hired to build a new call handling and IT system for NHS 24 (Scotland's health helpline).
The timeline: - 2009: Project launched - 2012: Contract signed with Capgemini - 2013: System expected (missed) - 2015: System crashed on launch day - 2016: Four years late, 73% over budget - Total cost: £117.4 million
What went wrong: - "Poor procurement management" - "Lack of skills" - "Over-reliance on suppliers' promises" - "Inadequate business case" - "Ineffective programme governance"
The result: The system crashed on October 28, 2015, shortly after launch. Every month it wasn't operational cost NHS 24 an additional £500,000.
HMRC: The £600 Million Question
Capgemini has held UK government tax systems contracts for decades. The latest: a £600 million contact center deal.
The criticism: - "Capgemini's whole approach was to ignore and obfuscate and throw down roadblocks" - "The tender conditions excluded many other suppliers" - "Swapping one supplier lock-in for another" - HMRC refused to reveal how much it paid Capgemini for contract extensions, claiming it would "undermine commercial interests"
The pattern: Win the contract → deliver substandard work → get extensions → charge more → repeat.
Part 3: The Tax Fraud Allegations
The CIR Scandal (September 2025)
France 2's investigative programme "Complément d'enquête" exposed Capgemini's use of the Crédit Impôt Recherche (CIR) — France's research tax credit.
The allegation: Capgemini was using public money (tax credits meant for research) to pay consultants who were between contracts — essentially using taxpayers to fund their bench.
The evidence: - Employees confirmed: "It's an open secret. There's an entire organization set up for this tax credit." - "They ask us to fill out CIR files even though we're on assignment at the client and do 0% research." - "They use CIR money to fund their incubator, which they call the hive."
Capgemini's response: "We strictly respect the legal framework" and "recent audits have not resulted in any significant adjustments."
The union's response: CGT Capgemini called it "dishonest methods" and "administrative tasks disguised as research."
Part 4: The Employee Abuse
Glassdoor: The Verdict
Rating: 3.5/5 (491 reviews in Australia)
The worst reviews:
"Worst company with horrible management. Once hired, 'talent' becomes... recent senior leadership changes have resulted in a dishonest, dehumanizing culture."
"Worst people, worst company. Compensation is 30% below Accenture. No career opportunities. Attrition rate is sky high."
"Worst experience. 40-50% attrition attributed to management being indifferent to employee complaints."
"Worst management and company culture. My client manager made it his mission to make my life miserable. I was screamed at every chance he got. I cried almost everyday."
"Beware of Capgemini. Horrible people lacking ethics, culture and value. Fake promises."
The Numbers
- Compensation: 3.0/5 (below market)
- Management: Consistently criticized
- Work-life balance: "You work extra overtime without any compensation"
- Job security: "Quick to fire when projects don't materialize"
- Culture: "Dishonest, dehumanizing"
The Class Action
Capgemini settled a $990,000 class action lawsuit with approximately 1,300 workers over employee health benefits. The lawsuit was filed by Indian nationals working for Capgemini North America.
The Unpaid Wages Scandal
On Reddit, employees reported: - Capgemini demanded $300 to provide pay stubs - Unpaid wages for completed work - Illegal withholding of employment records
Part 5: The Australian Shambles
The Works Closure (August 2024)
Capgemini AUNZ folded "The Works" — their creative agency — making at least half the agency redundant including a number of senior leaders.
What happened: - Staff told their jobs were at risk - Senior leaders departed - Future uncertain for remaining staff - No warning or consultation
The Layoffs
- 2023: Capgemini APAC eliminating roles in Australia and NZ
- 2024: The Works closure
- Pattern: Hire aggressively → cut when projects end
Employee Reviews (Australia)
"Low salaries which are not adjusted to the amount of work."
"Poor appraisals policy. If you worked your sweat out for 11 months and if 1 month you were on bench, you would be rated as 3."
"Internal power struggles exist between multiple groups."
"Unstable employment practices: Quick to fire when projects don't materialize."
Part 6: The Offshoring Machine
The Business Model
Capgemini has explicitly stated: "If Capgemini were to pull out of India, the company would have to completely reinvent the US business."
What this means for Australian clients: - Work shipped to India ($8-$15/hour) - Australian staff serve as "faces" - Client pays premium rates for "Australian expertise" - Quality suffers across time zones
The Reddit Verdict
"Capgemini is the same as Kyndryl, DXC, Atos and all the IT infrastructure bodyshops. I wouldn't count on them for long-term employment since you're probably being brought on to fill a body spot in an outsourcing contract."
Part 7: The Financial Picture
Declining Margins
- 2024: Operating margin 10.7%
- 2025: Operating margin 9.8%
- Revenue: Flat at €22.5 billion
The trend: The company is under pressure to cut costs, which means more offshoring and fewer Australian jobs.
The Executive Pay
While employees get 3.0/5 on compensation, executives continue to receive: - Performance bonuses - Stock options - Severance packages
Part 8: The Pattern
Here's how Capgemini operates:
- Win the contract with polished sales team and promises
- Hire Australian "faces" for client-facing roles
- Ship work offshore to India
- Charge premium rates for "Australian expertise"
- Pocket the difference (50-70% margins)
- Blame others when things go wrong
- Lay off staff when projects end
- Repeat
The Verdict
Capgemini is not a technology company. It's a profit machine that happens to sell technology services.
The evidence: - 20GB data breach that they refused to confirm - £117 million NHS disaster that crashed on launch day - Tax fraud allegations using public money - Employee abuse documented in hundreds of reviews - Australian layoffs while executives get bonuses - Offshoring while charging premium rates - Lawsuits from clients and employees alike
For IT workers: Run. Unless you want to be a face for offshore work, get laid off in the next restructuring, and be screamed at by managers. Check our Escape the MSP Trap guide for practical next steps.
For businesses: You've been warned. Get SLAs with teeth, require named Australian resources, and have an exit strategy before you start. Our MSP Cost Calculator can help you compare Capgemini's pricing against alternatives.
For investors: Margins are declining, the brand is damaged, and the talent is leaving. See our Private Equity Playbook for what happens when PE firms acquire MSPs.
Related Guides
- MSP Contract Checklist — Protect yourself before signing
- Best MSPs to Work For — See which MSPs treat employees better
- How to Escape the MSP Trap — Your escape plan
- Fair Work and MSPs — Know your legal rights
- Capgemini Deep Dive — Detailed analysis of Capgemini Australia
- Offshore Arbitrage Playbook — The business model behind the offshoring
- Following the Money — Where your MSP invoices actually go
The Capgemini Investigation Series
This article is part of our ongoing investigation into Capgemini Australia. Read the full series:
- The Capgemini Dossier — Data breaches, lawsuits, project failures, and the complete evidence file
- Capgemini: An Investigative Deep Dive — Employee reviews, acquisition trauma, financial analysis
- The Capgemini Exodus — Why 491 Glassdoor reviews show engineers are leaving
- Capgemini Survivor Stories — Anonymised accounts from former staff
- Capgemini Financial Deep Dive — Revenue per employee, profit margins, the cost-cutting arithmetic
- Capgemini vs the Competition — Head-to-head comparison with Datacom, NTT, DXC, Telstra Purple
- The Vulture of Big Four Collapse — How Capgemini scavenges distressed assets from KPMG and PwC
- The Invisible Workforce — 66% offshore, the WNS acquisition, the offshoring machine
- The £3 Billion AI Gamble — The US$3.3B WNS deal is offshoring with an AI sticker
This article is based on publicly available information including court documents, security reports, employee reviews, government reports, and media investigations. The MSP Playbook is not affiliated with Capgemini.
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