Capgemini is targeting revenue share from digital and cloud to reach 50 percent of total revenue in 2018.
Capgemini said its revenue reached €3.153 billion, registering 1.2 percent growth.. Growth at constant exchange rates was 7.2 percent.
Digital and Cloud revenues grew 20 percent at constant exchange rates and accounted for over 40 percent of Group revenues.
Growth in bookings by solidifying relationships with key accounts and cross-selling to scale transformational engagement, and attracting new logos, notably in APAC and LATAM, will positively affect Capgemini’s revenue in 2018, said TBR analyst Elitsa Bakalova.
Because Capgemini is experiencing pressure from established IT service vendors in digital and cloud market, Capgemini will be integrating automation and artificial intelligence tools and proprietary platforms across the portfolio to improve its service delivery.
Capgemini growth in regions
North America +14.8 percent
UK and Ireland –4.7 percent
France +5.4 percent
Rest of Europe +8.3 percent
Asia-Pacific and Latin America +1.4 percent
Capgemini growth in main biz
Consulting Services +21.6 percent
Technology & Engineering Services +4.2 percent
Application Services +10.4 percent
Other Managed Services –5 percent
Capgemini Group has a headcount of 203,400 (+3.9 percent) in Q1 2018. The number of employees in offshore centers rose to 115,900 (57 percent of the total headcount).
Capgemini said it aims at 6-7 percent revenue growth at constant exchange rates. The tech outsourcing company aims to increase profitability with an operating margin of 12.0 percent to 12.2 percent and to generate an organic free cash flow in excess of €1 billion.
Capgemini CEO Paul Hermelin said: “The Group continues to win market share, reflecting the alignment of its service portfolio with customer demand for both innovation and competitiveness. Demand is particularly strong in Europe and North America, driven notably by the financial services, consumer goods and manufacturing sectors.”
