The contract would make me choose Cap Gemini. If possible, you should enquire about the kind of job both companies offer to fresh graduates and then make a decision.

I am sure that my first position at Capgemini would be as Salesforce CRM developer.
At Hitachi/Sierra Atlantic, during my last interaction with them, they asked me if I would be willing to work overtime, weekends, as a tester or in tech support. I guess they just wanted to know if I would show the same amount of dedication in any domain. But, I think its a Java or PeopleSoft based project (its just a wild guess) because they kept asking about my experience in java.
Also, how different would the work environments be?

Just missed first lines in your post as I typed my response from my mobile. From your second post, it's more apparent that the job with capgemini would be a better choice at the moment. I've worked for software services and software/hardware product companies in the past (never worked in shifts though) and I didn't have a big difference in work environments, culture etc. It'd be a different game altogether if you're working in shifts and in tech-support.

Peoplesoft may limit your choice of companies if you wish to make a switch to another company later in your career. One of my closest friends works on Peoplesoft tech and while he gets slightly more than industry average, his choice of companies is limited to the big corporate that work in that domain.

I'd recommend capgemini over Hitachi based on the information you've provided.

What if it's java rather than peoplesoft?
Also, can I conclude that it's better to work on Salesforce than on peoplesoft?
After a year or two, I may opt for either MS or MBA. Right now, I'd say MS.
So, I'd like to keep my options open. I believe working on Java, .NET or any other project with coding would help me gain knowledge about programming so that it'll be helpful when I go for MS.
What do you think?

As I said, I'm basing my opinion on the basis of the information you have provided so far. We're talking about making a choice between Capgemini and Hitachi and to me, Capgemini seems to be a better option over Hitachi.

I'm not suggesting 'Java' over 'Peoplesoft'. There are several people who've built very successful careers working on peoplesoft. Also, make no mistake - I'm not suggesting that working on salesforce is better than working on peoplesoft. The truth is that we can't tell you what's good for you. As a rule of thumb, if you really love Java - you should go for it because doing what you love is the 'key' to successful career and that takes #1 spot in professional career decision making.

If you're determined to go for PG, then it's no brainer that you don't need to be tied up to a company with a bond. Capgemini doesn't ask you to stay with them for X days - and that turns to be in your favor.

That's why I suggested capgemini. I'd have suggested / recommended Hitachi had you mentioned different priorities / information etc. I value both the companies equally and have nothing that biases me towards any one of them.