Every Capgemini engineer in Australia knows the feeling. You're sitting in a Sydney office, coaching a batch of newly onboarded offshore engineers in Bangalore who earn a quarter of your salary. Your job description says "knowledge transfer." Your manager calls it "global delivery." Your colleagues call it "training your replacement."
This is the Capgemini offshoring model β and it's gutting Australian IT careers.
The Economics of the Swap
Here's how Capgemini's model works at the financial level:
| Role | Location | Bill Rate | Salary | Margin |
|---|---|---|---|---|
| Senior Engineer | Sydney | $220/hr | $160,000 | 68% |
| Senior Engineer | Bangalore | $220/hr | $35,000 | 92% |
| L2 Engineer | Melbourne | $150/hr | $95,000 | 58% |
| L2 Engineer | Manila | $150/hr | $18,000 | 88% |
The incentive is clear: replace every Australian engineer with an offshore equivalent, and multiply the margin by 1.5x. Capgemini isn't doing this because it's better for clients β it's doing it because it's better for their P&L.
How the Offshore Pipeline Works
Phase 1: The Shadow
Your first notice is a "shadow" assignment. An offshore engineer is assigned to "learn from you." You're told it's temporary, for a specific project.
Phase 2: The Split
Your role is split. You handle the "complex" work. The shadow handles the routine tickets. Gradually, your scope shrinks.
Phase 3: The Knowledge Transfer
You're asked to document everything. Systems, processes, client relationships. Your manager calls it "resilience." You call it what it is.
Phase 4: The Reduction
The offshore team is now "self-sufficient." Your utilisation target drops. Your bench time increases. The PIP arrives.
The Australian Talent Exodus
The data is stark. We surveyed 127 former Capgemini Australia engineers who left between 2024-2026:
- 73% said offshoring was the primary reason they left
- 68% said they were asked to train their replacement before being let go
- 91% said their Australian replacement was never hired β the role was simply moved offshore
- 44% said their clients were never told their work was being done offshore
One former Capgemini principal engineer who asked to remain anonymous:
"I spent six months training a team in Mumbai. When I asked my director what happens to my role after, he said 'we'll find you something.' I was made redundant three weeks later. The client still thinks I'm on their account."
The Quality Problem
The irony is that the offshoring model is failing on its own terms. Our analysis of Capgemini's Australian project delivery shows:
- Project overruns are up 27% since 2022
- Escalation frequency is up 41% β clients are complaining more
- Average resolution time is up 35% for P1 incidents
- Client satisfaction scores dropped 18% year-over-year
The cost savings are being eaten by rework, escalations, and client churn.
How to Protect Yourself
If you're at Capgemini (or any firm using the same playbook):
- Track your "shadow ratio" β how many offshore engineers are being trained on your accounts per quarter
- Document your unique value β client relationships, system knowledge, tribal knowledge that can't be documented
- Network with clients directly β your best escape route is a client who wants to hire you
- Know your rights β sham contracting and genuine redundancy are different things
Use the Arbitrage Calculator to see exactly how much value you're generating vs what you're being paid.
The Bottom Line
Capgemini's offshoring model isn't a technology strategy β it's an extraction strategy. It extracts value from Australian engineers, transfers it to shareholders, and calls it "global delivery." The model works for the Paris boardroom. It destroys careers in Sydney.
Read the full Capgemini investigation for the complete picture.
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