Global IT services firm Capgemini has announced that the process of divesting its subsidiary Capgemini Government Solutions (CGS) will be “initiated immediately,” according to a company statement. However, the firm did not clarify whether the decision to sell was directly linked to CGS’s contract with U.S. Immigration and Customs Enforcement (ICE).
The lack of detail has drawn attention amid heightened scrutiny of corporate ties to government agencies involved in immigration enforcement. Capgemini’s statement stopped short of outlining the scope of the divestment, potential buyers, or the expected timeline for completion.
CGS operates as Capgemini’s U.S. public sector arm, providing technology and consulting services to government clients. Its work has included contracts related to data management, digital transformation, and IT modernization for federal agencies. One such engagement involved ICE, which has faced criticism from advocacy groups over its immigration policies and enforcement practices.
Capgemini did not confirm whether public pressure or contractual considerations influenced its decision. The company emphasized only that the divestment process would begin without delay, suggesting a strategic shift rather than an abrupt withdrawal from public sector work.
Industry analysts note that multinational firms are increasingly reassessing government-related contracts as regulatory, ethical, and reputational risks gain prominence. Divesting specialized subsidiaries can allow companies to refocus on core commercial operations while reducing exposure to politically sensitive projects.
At this stage, it remains unclear how the divestment will affect CGS employees or existing client contracts. Capgemini has also not indicated whether it plans to continue serving public sector clients through other business units following the sale.
Further details are expected as the divestment process progresses, with stakeholders closely monitoring whether the move signals a broader change in Capgemini’s approach to government-related engagements.
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World News Today: International News Headlines – The Hindu