Capgemini raises growth target to 14-15% this year

France-based IT consulting company Capgemini has raised its growth target to 14-15 percent this year, against previous guidance of 8-10 percent after demand for digital transformation services boosted first-half revenue.
Capgemini IT services for digital transformation
“We are confident for the next semesters,” Capgemini Chief Executive Officer Aiman Ezzat said in a call with journalists.

The IT services company also confirmed its operating margin target of 12.9 percent to 13.1 percent for the full year and organic free cash flow target above 1.70 billion euros ($1.73 billion).

The high demand for IT specialists and shortage of available workers has left companies scrambling to attract new talent. Capgemini faces high levels of employee turnover.

It said its quarterly attrition rate reached 27 percent over the past 12 months, up from 26.2 percent at the end of the first-quarter, as rates have been stabilising for the past nine months.

The company, which operates in nearly 50 countries, said it expanded its workforce by 11,400 people in the last quarter, reaching a headcount of 352,100 at the end of June. Capgemini did not reveal its hiring plan for the current quarter.

The Paris-based group reported first-half revenue of 10.69 billion euros, up 22.7 percent year-on-year at constant exchange rates, driven by constant growth and high demand for all its business lines, namely in its application and technology services branch.

Capgemini said revenues in North America (30 percent of Group revenues in H1 2022) grew by +16.8 percent, driven in particular by the Financial Services and Manufacturing sectors.

Capgemini said the United Kingdom and Ireland region (12 percent of Group revenues) reported remarkable growth of +22.7 percent, boosted by a strong Public Sector but also by the Consumer Goods & Retail and Energy & Utilities sectors.

Capgemini said France (20 percent of Group revenues) reported revenue growth of +12.8 percent at constant exchange rates, with a particularly strong performance in the Manufacturing and Consumer Goods & Retail sectors.

Capgemini said the Rest of Europe region (29 percent of Group revenues) grew +16.9 percent, with the Manufacturing and Consumer Goods & Retail sectors as the top drivers.

Capgemini said revenues in the Asia-Pacific and Latin America region (9 percent of Group revenues) increased by +41.5 percent thanks to acquisitions in 2021 and performance of Manufacturing and Financial Services sectors.