Capgemini CEO: to focus on innovation to boost 2015 revenues

Capgemini CEO said the IT services company will be focusing more on innovation to boost its revenues in the current year.

Revenues generated by its most innovative offerings surged 25 percent in 2014. Capgemini said its revenue will grow at around 3 percent to 5 percent in 2015.

Capgemini said its 2014 revenues rose 3.4 percent to €10,573 million. Net profit of Capgemini rose 31 percent to €580 million in 2014.

“In order to better meet our clients’ expectations, we offer services not only in Cloud Computing, Big Data and Digital, but also in Cybersecurity with the recent launch of our new global service line,” said Capgemini Group Chief Executive Officer Paul Hermelin.

Consulting services, which comprises 4.2 percent of Group revenues, fell 3.4 percent — mainly due to slowdown in North America, the United Kingdom and Benelux, while France, Germany and the Rest of Europe were enjoying activity growth.

Local professional services (Sogeti), which brings 14.9 percent of Group revenues, rose 1.1 percent – despite a slight downturn in France. The IT services company experienced growth in North America and several other regions. There was weakness in demand in aerospace.

Capgemini CEO Paul Hermelin

Application service, which constitutes 55.4 percent of Group revenues, increased 3.8 percent — partly driven by innovation offerings particularly in SMAC (Social, Mobile, Analytics and Cloud) but also application maintenance. North America, the United Kingdom and the Asia-Pacific and Latin American region contributed substantially to this growth.

Other managed service, which contributes 25.5 percent of Group revenues, grew 5.3 percent — thanks to the growth of BPO (Business Process Outsourcing) and Infrastructure Services. North America and Benelux achieved double digit growth rates.

Capgemini said its revenue from North America increased 8.5 percent. Application services rose 9.3 percent and other managed services 11.4 percent, particularly in the financial services, energy and utilities, as well as retail and consumer goods.

The United Kingdom and Ireland revenues grew 4.1 percent — driven by application services, notably in the private sector, and by other managed services which benefited from the delay in the scheduled decrease in revenues on a major contract.

Asia-Pacific and Latin America region reported a growth of 5.0 percent. In Asia-Pacific, growth was close to 11 percent — driven by the development of financial services and the local Indian market. In Latin America, activity was stable though there was a double-digit growth in the fourth quarter.

On December 31, 2014, the total headcount of Capgemini was 143,643 employees compared with 131,430 employees at the end of the prior year.

Offshore employees totaled 67,404 (including 56,006 in India), representing 47 percent of the total Group headcount compared with 44 percent last year. The Group recruited close to 40,000 new employees in 2014, more than 40 percent of whom were young graduates.

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