Global IT services leader Capgemini is navigating a significant corporate crisis after its American arm, Capgemini Government Solutions (CGS), secured a contract with US Immigration and Customs Enforcement (ICE) valued at $4.8 million. The agreement, signed in December 2025, reportedly involves providing technology to identify and track foreign nationals within US jurisdiction, sparking intense criticism from French media, labor unions, and political figures.
The controversy has been amplified by recent high-profile incidents involving border enforcement agents, further polarizing the debate over US migration policies. Capgemini, a constituent of France’s CAC 40 index, has issued carefully worded clarifications, asserting that CGS operates with 'firewalled' decision-making and that the group HQ was 'recently made aware, through public sources' of the contract’s specifics.
Despite the company’s defense that the contract is not currently being fulfilled and is under internal review due to legal challenges, the reputational damage is mounting. Union representatives have expressed deep shock, labeling the deal as potentially making the company an 'active accomplice in serious human rights violations,' directly contradicting Capgemini’s stated corporate values. The situation underscores the complex ethical tightrope large European multinationals walk when engaging with classified US defense and security procurement.
Market reaction reflected investor concern regarding governance and potential regulatory exposure. Capgemini shares declined, reflecting a 10 percent drop year-to-date, as stakeholders demanded clarity on the operational separation between the Paris headquarters and its specialized US subsidiaries designed to bid on sensitive government work. Economy Minister Roland Lescure publicly called for the French firm to not only be transparent but also to 'call [such contracts] into question.'
Chief Executive Aiman Ezzat acknowledged that the nature of the work raised questions relative to the firm’s standard technology portfolio. However, union sources suggest that Capgemini’s involvement in US government contracts related to migration surveillance is not entirely new, pointing to other alleged deals involving detention and transport monitoring.
This incident serves as a crucial case study in the geopolitical friction arising from transatlantic corporate governance, where adherence to stringent European ethical standards clashes with the demands of lucrative, yet politically charged, US federal contracts. Capgemini’s handling of the internal review and the outcome of this weekend’s extraordinary board meeting will establish a precedent for how global firms manage ethical misalignment within their decentralized structures.
(Source: Based on reporting from France 24 and internal communications reviewed by AFP.)
