Enjoy it while it lasts

With all the major European IT service companies reporting rising revenues in the first quarter, it may seem as if the industry is finally shaking its multi-year slump. And this would be great news for these groups, as they have spent years cutting costs. It’s far more pleasant to increase earnings from growth than from cost cuts. But LogicaCMG, Atos Origin and Capgemini aren’t out of the woods by any measure. Operating margins across the sector are lower than they were three years ago. And thi...