European IT services giant Capgemini’s UK and Ireland business grew by just 1.3% during the third quarter of 2011, compared to 7.8% in the country’s native France and 10.4% in the Nordic region.

The company said that its UK business is "still affected by public sector spending cuts".

By comparison, rival Logica last week reported a 6% increase in UK sales for the most recent quarter, ending 18 months of declining sales in the country.

Overall, Capgemini’s revenues grew by 13% to €2.4 billion. That growth rate includes the effect of two recent major acquisitions, those of Brazlian IT services company CPM Braxis and of French rival Prosodie. Without those acquisitions, Capgemini’s year-on-year revenue growth would have been 4.7%.

The company revealed that its outsourcing division saw a "slight" year-on-year decline in bookings during the third quarter, although other divisions saw a 6.4% increase.

It also revealed that half of all the company’s new recruits during the month were "young graduates".