Capgemini plans exit from US government contracts business

French IT major Capgemini is divesting its US subsidiary following intense scrutiny over a controversial contract with US Immigration and Customs Enforcement, citing legal constraints and alignment concerns as the divestment process begins immediately.

French technology firm Capgemini has announced it will sell its US-based subsidiary, Capgemini Government Solutions (CGS), after coming under significant pressure over a contract the unit signed with the US Immigration and Customs Enforcement (ICE) agency. The decision reflects mounting criticism from French lawmakers and broader public concern about the ethical implications of the subsidiary’s work with US immigration enforcement.

Capgemini said on Sunday that it will immediately begin the process of divesting CGS, though it did not explicitly link the sale to the ICE contract in its official statement. The company explained that “usual legal constraints imposed in the United States on contracting with federal entities conducting classified activities” made it difficult for the group to exercise appropriate oversight of the subsidiary’s operations, and therefore ensure alignment with its broader corporate objectives.

Pressure from lawmakers and public backlash

The ICE contract drew intense scrutiny after reports surfaced about CGS’s involvement in providing services to support immigration enforcement operations. French government officials, including Finance Minister Roland Lescure, had asked Capgemini to clarify the nature of the agreement amid growing unease over tactics used by ICE agents, especially following fatal incidents involving immigration enforcement in the United States.

Capgemini Chief Executive Aiman Ezzat acknowledged last week that the company had only recently become aware of the contract awarded to CGS by the US Department of Homeland Security, underscoring that the parent firm had no access to classified information or direct control over the subsidiary’s technical operations due to regulatory restrictions. He said the company would review the scope and content of the contract and contracting procedures.

Financial context and forward strategy

CGS represents a small portion of Capgemini’s global business, accounting for approximately 0.4% of its estimated 2025 revenue and under 2% of its US income. Despite its limited financial impact, the controversy surrounding the subsidiary’s work with ICE has driven the company to seek a clean break.

The move marks a significant reputational adjustment for Capgemini as it navigates ethical concerns and regulatory challenges while maintaining its core focus on technology and consulting services worldwide.