BrazilOn its 55th birthday, Capgemini cracks €20 billion in global revenues
Global consultancy and technology services Capgemini has broken through the €20 billion revenue barrier for the first time in its 55-year history, with 2022 growth surpassing a massive 20 percent.
Paris-headquartered Capgemini has posted record revenues of €22 billion, up by more than 15 percent through organic growth alone, or above 20 percent inclusive of acquisitions closed worldwide.
The financial figures represent a €6 billion jump in revenues over the past three years, with the company’s global headcount also growing from around 220,000 to 360,000 over the same period – including an 11 percent bump last year.
“We ended 2022 with good momentum despite a less favourable economic environment, therefore, we enter 2023 on a solid footing,” said Capgemini CEO Aiman Ezzat. “The group’s transformation over the past few years enables us to be recognised as a business and technology partner by our clients across their entire value chain. I am confident in our ability to further strengthen our position with clients and expand our market share.”
Revenues last year grew across all segments, but there were regional variations. In Capgemini’s home territory of mainland Europe and France, which together account for close a half of its takings, revenue growth was driven by the manufacturing and consumer goods sectors, while the almost 20 percent growth across the Channel in its United Kingdom and Ireland division was attributed to a very dynamic market for public sector consulting.
Meanwhile, in Capgemini’s second largest continental market of North America, the firm highlighted the Financial Services and Telecoms, Media and Technology industry verticals as its primary drivers, helping spur 15 percent growth for an overall 30 percent share of global revenues.
The Asia Pacific and Latin America geography contributed a further 10 percent, the massive 30 percent growth in the region part put down to recent acquisitions.
Deals
Capgemini invested just over €200 million in acquisitions last year, which represents somewhat of a slowdown in big-ticket M&A activity on recent years, such as the firm’s €3.6 billion splurge on engineering consultancy Altran in 2019. As for singling out deals, in Europe, the firm bought several players in the French, English and German markets.
Elsewhere, Capgemini’s dealmakers closed the purchase of Salesforce specialist Aodigy in Singapore, building on the previous year acquisition of Australian IT consultancy Empired.
Divisions
As for service lines, Capgemini’s Strategy & Transformation offering – known externally as Capgemini Invent (formerly Capgemini Consulting – was the fastest-growing, up by over 28 percent, albeit still accounting for under 10 percent of revenues.
Still, the firm’s core business, Applications & Technology, through which it derives close to two thirds of its income, achieved impressive growth of 18 percent on the back of continuing demand from large corporations for digital transformations across more of their value chains.
However, despite its strong 2022 performance, the firm is expecting a significant slowdown in growth over the course of this year, and has flagged a reduction in hiring due to sluggish demand for cloud, data and artificial intelligence services, while also taking advantage of lower attrition rates and recent investments into employee skilling. After exceeding last year’s targets, Capgemini this year projects growth in the range of just 4 percent to 7 percent at constant rates.
A 55-year heritage
Capgemini was founded by Serge Kampf in 1967 in France. Initially established as Sogeti (today Sogeti is an independent subsidiary of the company), Capgemini adopted its current brand in 1996. Capgemini supports its clients with consulting (Capgemini Invent) and a range of technology services and solutions, as well as business process outsourcing and managed services.
