Capgemini, a leading global consulting, technology, and digital transformation firm, revealed a notable uptick in revenues for the fiscal year 2023. Capgemini’s revenues reached €22,522 million, marking a 2.4 percent increase compared to the previous year.
The report, released on February 14, also highlighted a positive trend in bookings, which totaled €23,887 million in 2023, reflecting a 2.6 percent growth from the previous year. This increase translated into a book-to-bill ratio of 1.06 for the entire year, with a notable spike to 1.18 in the fourth quarter. Despite facing extended decision cycles, Capgemini maintained its commercial momentum, buoyed by sustained demand for its IT services.
Notably, large corporations and organizations remained steadfast in their pursuit of digitalization and sustainability goals. However, there was a discernible shift towards prioritizing operational agility and cost efficiency. This shift drove strong demand for transformation programs with rapid payback periods, leveraging Capgemini’s high-value service offerings, particularly in Intelligent Industry, Cloud, Data, and Artificial Intelligence.
Furthermore, Capgemini’s strategic focus on value-creating services, coupled with enhanced operational efficiency, led to a 40 basis points increase in gross margin. Despite challenges such as rising inflation and market slowdown, Capgemini saw its operating margin rise to 13.3 percent of revenues, amounting to €2,991 million—a 4 percent increase compared to 2022, surpassing the targeted improvement range.
Regionally, Capgemini experienced varied performance across different markets. In the United Kingdom and Ireland region, which accounted for 12 percent of Capgemini Group revenues, growth of 7.9 percent was driven by sectors such as Public Sector, Consumer Goods & Retail, and Manufacturing.
Similarly, the Rest of Europe region, representing 30 percent of Capgemini Group revenues, saw a 7.6 percent growth propelled by the Public Sector and Manufacturing. Meanwhile, France, contributing 20 percent of Group revenues, reported a 6.1 percent revenue increase, primarily supported by the Manufacturing and Consumer Goods & Retail sectors.
Conversely, North America witnessed a slight decrease in revenues by 1.3 percent, with varying sectoral performance.
Finally, the Asia-Pacific and Latin America region reported a 4.6 percent revenue growth, primarily driven by the Asia-Pacific region.
Despite the overall positive financial performance, Capgemini’s total headcount saw a decrease of 5 percent year-on-year, with the onshore workforce down by 2 percent and the offshore workforce down by 7 percent. As of December 31, 2023, the company’s total headcount stood at 340,400 employees, with the offshore workforce constituting 57 percent of the total.
Capgemini remains optimistic about its prospects moving forward, leveraging its strategic focus areas and robust service offerings to navigate through evolving market dynamics and deliver value to its clients.
