French IT services group Capgemini has reached a definitive agreement to sell its US government subsidiary, ending months of scrutiny over its work for US immigration enforcement. The buyer is ITC Federal, a Virginia-based provider of digital services to federal agencies focused on homeland security and defence, Capgemini said in a statement on Saturday.
The transaction is subject to customary closing conditions and is expected to complete in the coming weeks. The group first announced its intention to divest Capgemini Government Solutions in February, after reports revealed a contract with US Immigration and Customs Enforcement (ICE) for technology used to identify and track foreign nationals on American soil.
At the time, Capgemini argued that "the usual legal constraints in the United States on contracting with federal entities engaged in classified activities did not allow the Group to exercise proper control over certain aspects of this subsidiary's operations." The explanation did little to quell criticism from French lawmakers, including Economy Minister Roland Lescure, who demanded greater transparency about the company's activities in the US.
ICE, tasked with enforcing the Trump administration's hardline immigration policies, has drawn widespread condemnation for its aggressive tactics. The agency faced renewed outrage after two US citizens were shot and killed by ICE officers in Minneapolis earlier this year. The UN rights chief has also demanded answers after 23 deaths in US immigration custody.
European corporate accountability
The episode highlights the growing pressure on European multinationals to align their business practices with ethical standards, even when operating abroad. For Capgemini, the controversy threatened to tarnish its reputation in France, where it is a flagship of the country's tech sector. The group, which employs tens of thousands of people across Europe, generates annual revenue of around €22.5 billion, with operations in some fifty countries.
The divested subsidiary represented only 0.4% of Capgemini's global turnover in 2025 and less than 2% of its US revenues, according to the company. Yet the symbolic weight of the ICE contract proved far greater than its financial footprint.
Capgemini's decision to sell rather than simply terminate the contract reflects the complexity of extricating itself from a long-term federal agreement. The buyer, ITC Federal, is a specialist in serving US government clients, which may allow the unit to continue its work without the same reputational exposure.
For European observers, the case serves as a reminder that corporate responsibility does not stop at the continent's borders. As Europe faces a new security era, the ethical dimensions of technology contracts with foreign governments are likely to remain under scrutiny.
Capgemini's move also comes amid broader debates in Europe about the role of technology in migration management. Several EU member states have faced criticism for using surveillance and data-tracking tools in their own border and asylum procedures. The Ceuta crisis exposed weaknesses in Spain's response, while other governments have turned to digital solutions to manage migration flows.
Analysts say the sale may not fully insulate Capgemini from future criticism, as the group continues to provide services to other government clients worldwide. But the company is clearly hoping that the divestment will draw a line under a damaging chapter.
In a statement, Capgemini said it remains committed to "the highest standards of ethics and integrity" in all its operations. Whether that commitment will be tested again remains to be seen.
