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Capgemini expects significant drop in revenue growth in 2023

Capgemini, a leading IT services company, said it expects its revenue to grow 4-7 percent in constant currency in 2033 as compared with the 16.6 percent growth it reported for 2022.
Capgemini IT services for digital transformationResearch firm Gartner earlier indicated that revenue growth of the global IT services industry will be 5.5 percent in 2023 at $1,312.588 billion as compared with 3 percent growth in 2022 at $1,244.746 billion.

Paris, France-based Capgemini is forecasting significant drop in revenue growth due to slowing demand for its cloud, data and artificial intelligence services in the uncertain macroeconomic environment.

At present, Capgemini generates annual revenue of €6.737 billion (representing 31 percent of total revenue) from North America, €4.276 billion (representing 19 percent of) from France, €2.561 billion (representing 12 percent of) from the United Kingdom, €6.437 billion (representing 29 percent of) from Rest of Europe and €1.984 billion (representing 9 percent of) from Asia-Pacific and Latin America region.

Capgemini is targeting an operating margin of 13-13.2 percent in 2023. Capgemini’s operating margin increased by 22 percent to €2.867 billion, representing 13 percent of revenues in 2022, compared with 12.9 percent in 2021.

“This is another record year for our Group, with 16.6 percent constant currency growth and 13 percent operating margin. We ended 2022 with good momentum despite a less favorable economic environment. Therefore, we enter 2023 on a solid footing,” Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said in its earnings report.

Capgemini’s revenue reached 22 billion euros ($23.48 billion) last year, while its bookings totalled 23.7 billion euros, an increase of 16.8 percent at constant exchange rates.

In 2022, Capgemini invested €204 million in acquisitions. Capgemini said acquisitions contributed +1.3 points to revenue growth in 2022.

Capgemini has increased its workforce by 11 percent year-on-year, reaching a headcount of 359,600 at the end of December, 2022.

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