PARIS, Feb 2, 2026, 16:11 CET
Capgemini shares jumped as much as 2% Monday after announcing plans to sell its U.S. subsidiary, Capgemini Government Solutions, amid backlash in France over a contract with U.S. Immigration and Customs Enforcement. The unit secured an ICE contract in December 2025 for “skip tracing,” which involves using data analysis to track individuals via financial records, phone data, and digital footprints. Roland Lescure called for transparency in parliament, while CGT criticized the planned sale, noting it didn’t address their concerns and highlighting Capgemini’s broader North American workforce of 6,000 still serving federal clients. (Reuters)
This episode matters because it reveals how a seemingly minor contract can swiftly turn into a political battle over a major local employer. For Capgemini, the issue has centered less on revenue and more on maintaining control, oversight, and protecting its reputation.
It also highlights the messy reality of government contracting. When projects involve classified U.S. federal operations, companies often run into governance and disclosure restrictions that clash with the policies and branding of their foreign parent companies.
Capgemini revealed that legal restrictions linked to classified U.S. federal contracts prevent the group from exercising “appropriate control” over parts of the subsidiary’s operations, hindering alignment with its goals. The company announced it will begin the divestiture process immediately. The unit accounts for just 0.4% of Capgemini’s projected 2025 revenue and under 2% of its U.S. revenue. (Capgemini)
Put simply, “classified” work often involves strict boundaries: who’s allowed to view certain information, who has approval authority, and how data moves around. This setup can frustrate parent groups, making them feel they can’t oversee a unit to the same level they do elsewhere.
The contract at the heart of the dispute deals with “skip tracing,” a term typically linked to debt collection. In this context, it means using data-driven searches that merge various information sources to locate a person.
Capgemini has faced pressure from multiple fronts. The issue has surfaced in parliament, union meetings, and internal management talks—and on Monday, it hit the stock price.
Chief executive Aiman Ezzat said he only just found out about the subsidiary’s ICE contract. On LinkedIn, he noted that “the nature and scope of this work has raised questions” for the group. (AP News)
CGT is pushing Capgemini to do more than just sell off a unit. The union wants the company to halt all work with U.S. federal agencies and to review previous contracts thoroughly. Their main concern: selling one division won’t necessarily end similar projects happening in other parts of the company.
Accenture and IBM are also key players vying for government IT contracts, where strict compliance and security regulations often come into play. The Capgemini situation highlights that winning the paperwork battle is just part of the challenge; managing public perception matters just as much.
The divestiture doesn’t promise a clean break. Capgemini hasn’t revealed potential buyers, the price it’s aiming for, or the timeline for a sale. And critics might keep up the pressure, regardless of who takes over the unit.
At the moment, the company is isolating a small subsidiary to contain the controversy before it affects bigger client projects. Investors are keeping an eye on whether the sale resolves the problem or just drags it into a lengthier, more complicated ordeal.
