Capgemini Group revenue growth slowed despite digital wins

Capgemini revenue Q3 2017Capgemini Group revenue rose 0.9 percent to €3,046 million in Q3 2017.

Digital and Cloud revenues grew 23 percent at constant exchange rates. Earlier, Capgemini signed a digital deal with retail chain McDonald’s to support its digital transformation. Capgemini’s Digital and Cloud business accounts for 36 percent of Group revenues. Capgemini earlier acquired US e-commerce expert Lyons Consulting Group.

Capgemini’s Consulting Services, which form 4 percent of Group revenues, grew 16 percent in Q3, thanks to the investments made in Digital in North America and a sharp increase in the Rest of Europe.

“Group growth accelerated in the third quarter. In North America, we reaped the benefits of our investments with a 6.9 percent growth at constant exchange rates. The strong momentum of our activities in the Manufacturing and Retail & Consumer Goods sectors drives our performance in this region,” said For Paul Hermelin, chairman and CEO of Capgemini Group.

Capgemini said Technology & Engineering Services, which contribute 15 percent of Group revenues, posted 3.8 percent revenue growth supported by North America and France.

Capgemini’s Application Services, which contributes 63 percent of Group revenues, increased 5.7 percent.

Capgemini said Application Services achieved a growth rate of around 10 percent in France, Central Europe, Scandinavia, Italy and Asia. Other Managed Services, which form 18 percent of Group revenues, reported 6.3 percent decrease in revenues.

The Group’s total headcount is 198,600, an increase of 5.9 percent, with nearly 113,000 employees in offshore centers or 57 percent of the total headcount.