Capgemini Sells US Subsidiary After ICE Criticism

The French IT firm cites lack of visibility and control over US operations as reason for divestment.

Feb. 3, 2026 at 12:31am

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French IT company Capgemini is selling its American subsidiary Capgemini Government Solutions after facing heavy criticism over the subsidiary's $4.8 million contract to identify and track migrants for the US Immigration and Customs Enforcement (ICE) agency. The move comes following political backlash in France, union concerns, and demands for transparency around Capgemini's involvement with ICE.

Why it matters

Capgemini's decision to divest from its US subsidiary highlights the growing scrutiny and pressure on technology companies to avoid partnerships with government agencies involved in controversial immigration enforcement activities. This case underscores the reputational and operational risks that multinational firms can face when their subsidiaries become entangled in politically-charged issues.

The details

Capgemini says that American privacy and security regulations have made it impossible for the French parent company to have sufficient visibility and control over its US operations. However, the Multinationals Observatory organization claims Capgemini's subsidiary had a more active role in ICE's deportation work than the company's management has admitted, with compensation allegedly tied to the number of arrests.

  • In February 2026, Capgemini held an extraordinary board meeting to discuss the future of its US subsidiary.
  • Capgemini's $4.8 million contract with ICE to identify and track migrants in the US has been in place for an undisclosed period of time.

The players

Capgemini

A French IT consulting and services company.

Capgemini Government Solutions

The American subsidiary of Capgemini that held a contract with ICE.

Immigration and Customs Enforcement (ICE)

The US government agency responsible for immigration enforcement and deportation.

Multinationals Observatory

An organization that claims Capgemini's subsidiary had a more active role in ICE's deportation work than the company has admitted.

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What’s next

Capgemini has not provided details on the timeline or process for selling its US subsidiary, but the divestment is expected to occur in the coming months.

The takeaway

This case highlights the growing pressure on technology companies to carefully consider the ethical and reputational implications of government contracts, especially those involving controversial immigration enforcement activities. Multinationals must balance business objectives with maintaining sufficient oversight and control over their global operations.