IT consultancy Capgemini reported revenues of €18,160 million (+14.6 percent), mainly due to the consolidation of Altran from April 1, 2020.
Digital and Cloud services – which account for around 65 percent of Capgemini’s activity – reported strong double digit growth, reflecting the priority given by Group clients to critical digital transformation projects.
Capgemini said its operating margin this year will likely be held back by inflationary pressures on salary and the cost of returning to offices.
The firm, which offers its services to industries ranging from telecommunications to aerospace, expects a 2022 operating margin of 12.9 percent to 13.1 percent and revenue growth of 8 percent-10 percent at constant currency.
For 2021, Capgemini posted an operating margin of 12.9 percent, back at pre-pandemic levels, on revenue of 18.16 billion euros ($20.52 billion), up 15.1 percent at constant currency.
Capgemini said margin improvements would be reined in by salary inflation and as the company anticipates higher costs from the return of workers to the office and increased travelling, Chief Executive Aiman Ezzat said during a call.
At December 31, 2021, the Group’s total headcount stood at 324,700. This 20 percent increase year-on-year, in a tight skilled labor market, demonstrates Capgemini’s ability to attract talent to fuel its business growth.
In particular, 189,000 employees work in offshore centers, some 58 percent of the total headcount, up 4 points on the end of 2020 and above the level reached before the Altran integration.
Strategy & Transformation consulting services (7 percent of Group revenues) reported a +27.0 percent rise in total revenues, reflecting the strong recovery in Group client discretionary expenditure.
Applications & Technology services (62 percent of Group revenues and Capgemini’s core business) reported a +13.1 percent increase in total revenues.
Operations & Engineering total revenues (31 percent of Group revenues) grew +18.5 percent, taking into account the acquisition of Altran and the sale of Odigo.
All Group regions posted double-digit growth in 2021.
Revenues in North America (29 percent of Group revenues) grew by +12.0 percent, driven mainly by the TMT (Telecom, Media and Technology), Consumer Goods and Manufacturing sectors.
The United Kingdom and Ireland region (11 percent of Group revenues) had a particularly strong year, with revenue growth of +18.3 percent. This performance was led by the Public Sector, which remained very dynamic throughout the year, and the strong recovery in Financial Services at the end of the year.
France (21 percent of Group revenues) reported revenue growth of +10.3 percent, largely driven by a strong recovery in the Manufacturing sector, and, to a lesser extent, the Services and Consumer Goods sectors.
The Rest of Europe region (31 percent of Group revenues) grew +17.6 percent, benefitted from the significant rebound in the Manufacturing sector. This momentum was also supported by a recovery in the TMT and Consumer Goods sectors.
Revenues in the Asia-Pacific and Latin America region (8 percent of Group revenues) increased sharply by +27.3 percent — supplemented by Group acquisitions in Asia-Pacific.