Title: Capgemini Reports 7.9% Revenue Surge in 1H 2023 and Unveils ₹2 Billion AI Investment Plan
Capgemini, a global leader in consulting, technology services, and digital transformation, has experienced an impressive 7.9% increase in revenue during the first half of 2023. The company’s revenue growth in constant currency is even more remarkable, with a surge of 6.9% to ₹11.4 billion. However, it is worth noting that Capgemini’s growth in the second quarter was slightly lower, reaching 5.2% at constant exchange rates and 4.7% on an organic basis. This dip can be attributed to the more challenging macro-economic environment that the company foresaw.
Capgemini Group CEO, Aiman Ezzat, remains optimistic about the future and has announced a significant investment of ₹2 billion in Artificial Intelligence (AI) over the next three years. Ezzat believes that generative AI will play a pivotal role in the company’s transition. Capgemini aims to develop a portfolio of industry-specific offers and form strategic partnerships, including collaborations with Google Cloud and Microsoft. Additionally, the company plans to double its data and AI teams to 60,000 employees in the next three years, while also prioritizing the training of its workforce through the data & AI campus.
Ezzat expressed his confidence in the transformative power of generative AI, stating, We have many client projects underway, a strong pipeline, and plan to double data & AI teams to 60,000 in the next three years. Capgemini’s commitment to AI is driven by its goal to fully leverage the immense potential of generative AI in its operations.
In terms of financial performance, Capgemini achieved bookings totaling ₹11.9 billion in the first half of the calendar year. In North America, revenue growth remained moderate at 3% on a constant exchange rate basis. The manufacturing and services sectors continued to show resilience, while the financial services sector reported limited growth. On the other hand, the TMT (Technology, Media, and Telecommunications) sector and the consumer goods & retail sectors experienced a slight contraction.
Capgemini’s operating margin for the first half of 2023 stood at 15.2%, slightly lower than the previous year’s 15.5%. Although there was a 1% decrease in overall headcount during the June quarter, the company witnessed a 3% increase in its onshore workforce, amounting to 1.4 lakh (140,000) employees. In contrast, the offshore workforce saw a 3% decline, resulting in 2 lakh (200,000) employees.
The news of Capgemini’s success in revenue growth and its ambitious AI investment plan portrays the company as a leading player in the consulting and technology services industry. Capgemini’s strategic positioning and commitment to digital transformation have allowed it to gain market share and effectively support clients in their transition towards a digital and sustainable economy.
This achievement positions Capgemini as one of the industry leaders and demonstrates its ability to thrive in a softer economic environment. The company’s dedication to growth and cutting-edge technological advancements, such as AI, drives its continued success and reinforces its prominence in the market.
