French technology consulting giant Capgemini announced plans to divest its subsidiary Capgemini Government Solutions following sustained criticism over the unit’s contracts with U.S. Immigration and Customs Enforcement (ICE). The Paris-based multinational confirmed the impending sale in a Sunday statement to French media outlets.
Corporate Decision Amid Controversy
Capgemini stated the divestment process “will be initiated immediately,” emphasizing the subsidiary represents just 0.4% of group-wide revenue and less than 2% of its U.S. operations. This strategic move follows months of mounting pressure from human rights advocates and ethical investment groups.
ICE Contracts Spark Backlash
The controversy intensified after ICE’s December 2023 “Operation Metro Surge” in Minnesota, where federal agents conducted widespread arrests of undocumented immigrants. According to documentation from the French watchdog organization Multinational Observatory, Capgemini Government Solutions developed specialized identification and location tracking tools used in these operations.
Minnesota Protests Turn Tragic
The ICE operations faced fierce opposition from Minnesota’s Democratic leadership and residents. Thousands participated in protests against the federal agency’s presence, culminating in a deadly confrontation where immigration agents fatally shot two American protesters: 37-year-olds Renée Good and Alex Pretti. These deaths amplified national scrutiny of both ICE tactics and its corporate partners.
Ethical Concerns in Tech Consulting
Capgemini’s divestment follows similar moves by companies like Microsoft and Salesforce, who faced parallel criticisms regarding their government contracts. Industry metrics show the global market for government technology solutions grew 8.2% in 2023 according to Gartner Research, intensifying scrutiny of vendor selection processes.
The company maintains all operations complied with applicable laws but acknowledged “evolving stakeholder expectations” influenced their decision. Prospective buyers for the subsidiary have not been disclosed as of publication.
Source: Original Report (Spanish)
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