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Capgemini back on revenue growth path - despite big consulting fall

Paul Hermelin

Paris: Capgemini Group, Europe's biggest IT services consultancy, has reported consolidated revenues up 1.6% to €2,451 million on a like-for-like basis in its third quarter of 2013 — despite a big contraction in consulting.

This modest return to growth confirms the steady improvement it has recorded since the beginning of the year (after declines of 1.7% in Q1 and 0.4% in Q2). Consolidated revenues fell 2.8% at current Group structure and exchange rates.

Like-for-like growth in revenues breaks down as follows:

  • by business, the quarter saw Outsourcing Services return to growth, increasing 2.2%, together with the Local Professional Services business (Sogeti), which has steadily recovered over the year (+1.5% in Q3, after -2.5% in Q2 and -5.2% in Q1). Technology Services revenues grew 2.0%. Consulting Services revenues, however, contracted 7.0%.
  • by region, the emerging countries of Asia-Pacific and Latin America once again reported the strongest growth (+14.6%). North America grew moderately by 1.3%. After its return to growth in Q2, France reported a 3.4% increase in revenues. The United Kingdom and Ireland region contracted 2.5% due to a fall in public sector revenues in line with forecasts. The Benelux region reported a limited decline (-1.8%), confirming the gradual stabilization of activity thanks, the firm says, to the measures taken at the end of 2012. The rest of Europe is stable (+0.1%).

Bookings totalled €1,965 million in Q3 2013, down slightly on Q3 2012. Consulting Services, Technology Services and Local Professional Services bookings nonetheless remained stable overall.

As of September 30, 2013, the total headcount of the Group was 130,088. Offshore employees totaled 56,198, representing 43.2% of the Group headcount. Capgemini says it continues to focus on recruiting young graduates, who represent more than 40% of total recruitments since the beginning of the year.

Based on these results, the Group confirmed its 2013 full-year guidance; it should see organic revenue growth in line with 2012.

Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group, commented, "This year, we have reported steady improvement in our performance, quarter after quarter, a trend that should continue in Q4. Our portfolio of strategic offerings generates a growing share of our bookings, demonstrating our ability to anticipate the evolution of client demand, particularly in innovation and cost rationalization."

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