Capgemini’s Brazilian subsidiary, Capgemini Brazil, has entered into a new agreement with Brazilian conglomerate ABC Algar group to support their company’s operations in Brazil. Under the terms of the thirteen-year agreement, Capgemini will assume responsibility for Algar’s General Accounting, Account Receivables, Account Payables, Tax, Human Resources Administration, Payroll and Procurement.
The ABC Algar group currently controls companies, organized into 3 business units: technology & telecommunications, agribusiness, and services. As part of the agreement Capgemini will provide business process outsourcing services, with around 150 staff using Oracle and BPOpen solutions from its Brazil delivery centers. The project will include standardization of processes and service levels across two Algar business units and nine of its companies, covering Agribusiness, Aviation, Security, Technology and Media. The aim is to increase productivity by over 45% in addition to improving quality and flexibility of services to keep up with Algar’s expected growth. This will be made possible through Capgemini BPO technology and its delivery network of more than 1,000 people in Brazil.
Proservartner Point of View: We commented last year on the acquisitions in Brazil of CPM Brazil and Sonda Procworks by Capgemini last year, as a wise move in a growing Brazilian market. Both from a domestic BPO perspective (for Brazil to Brazil services) and as a location for multinationals seeking solutions for the US and Southern Europe, a competitive advantage in Brazil will bring Capgemini an increasing amount of joy.
As a region, the Brazilian market will provide longer contracts but at a more competitive margin, and the Algar deal is typical of this. The days of 13 year contracts for BPO are uncommon in the North American and European markets, and one imagines that this was achieved as a result of the committed 45% efficiency improvement.
Expect more wins in Brazil from Capgemini.
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