French outsourcing group Capgemini has reported flat Q1 results, impacted by the weak dollar, according to the company. Year-on-year Q1 revenues saw a slight dip from the first quarter 2007 at €2.19bn (£1.7bn) compared with €2.21bn a year ago.

With the US and UK accounting for 41% of the company's total revenues, the decline of the dollar, and of the pound against the euro, have combined to hit the company.

UK revenues fell 4.5 percent, partly linked to the curtailment of Capgemini’s contract with HMRC.

Capgemini confirmed its targets for full-year revenue growth of between 2-5 percent at constant exchange rates.

Although the company is comparatively well positioned among the roster of European outsourcing talent, it is more exposed to the weak dollar and to the pound's weakness against the euro than its Asian rivals, who will be circling for a European buy. That said Asian sales recorded a slight increase.

Sequential growth from Q4 2007 was negative across the board by single digits.

The company said that outsourcing revenue growth stood at a comparatively healthy 3.7% year on year. Manufacturing, retail and distribution remains the largest segment of the company's overall business, growing slightly year on year to 28% of the business from just under 27%. Public sector deals fell to 25.5% of the company's overall business from 27.9% last year. • Capgemini has signed a five-year IT infrastructure management outsourcing deal with bank C Hoare & Co.