BrazilCapgemini Invent grows 15% and passes $1 billion barrier
Capgemini Invent, the strategy and business transformation consulting arm of Capgemini, has booked strong growth in its latest financial year, propelling it through the magical $1 billion income barrier.
Across the Capgemini Group, the French listed company saw its revenues grow by 7% to a record €14.1 billion, up from €13.2 billion the year previous. Notably, growth was achieved organically in what is a rare feat for the firm, following a busy 2018 when it acquired among others UK-based Adaptive Lab and US-based LiquidHub, and a busy 2020 to date with the bolt-ons of Purpose in the US and Advectas in Sweden.
Capgemini’s biggest deal in its history however is set to be closed later this year, when French technical consultancy Altran joins its ranks for €3.6 billion. Following closing, Capgemini will have more than 250,000 employees globally generating revenues to the tune of €17 billion.
According to Paul Hermelin, Chairman and Chief Executive Officer of Capgemini, the firm’s strong upwards trajectory builds on the momentum started several years ago. “In 2019 we once again outpaced market growth, as we committed to do,” he said in a press statement.
Over 70% of revenues are generated by the Applications & Technology services division, which provides clients a range of IT development and digital delivery services. The Operations & Engineering services arm – responsible for multi-year outsourcing contracts, cloud infrastructure services and managed services – earns 22% of total group revenues.
Capgemini Invent
On the back of a stellar 15% growth rate, Capgemini Invent was the group’s star performer. Capgemini Invent launched in September 2018 after Capgemini merged its Capgemini Consulting label with several other digital and creative units including LiquidHub, Fahrenheit 212, Idean, Adaptive Lab and Backelite to form a modern age, integrated strategy and digital transformation specialist.
Having broken through the $1 billion barrier (€989 million), Capgemini Invent joins a small group of leading consultancies that sit above the ‘magical’ threshold. According to data from Consultancy.org, Capgemini Invent is now the world’s 26th largest consulting firm (the list focuses on firms with a management consulting heritage), having surged past Slalom Consulting, Protiviti and ZS Associates in the past year.
Consulting firms that are now in reach include Strategy& (the strategy consulting arm of PwC), Guidehouse (which last year acquired Navigant to thrust itself into the top 30) and Kearney (which recently rebranded from A.T. Kearney). The globe’s largest player are not surprisingly Accenture and the Big Four, followed by strategy consulting giants McKinsey & Company and Boston Consulting Group.
Growth of Capgemini Invent was led by strongly expanded demand for its services in the manufacturing, energy & utilities and telecom, media & technology sectors, said Cyril Garcia, the CEO of Capgemini Invent. The acquisition of Konexus Consulting, a German consulting firm focused on the energy and utilities sector, added some €6 million to the revenue jump.
From a regional perspective, one third of Capgemini’s revenues now come from its North American business unit, in which it has invested heavily in recent years. Home base France accounts for one fifth of group revenues, with the remainder of Europe accounting for 39% of revenues. The fastest growing regions for the firm, Asia-Pacific and Latin America, grew by 8% last year.
