This article was written by a human. Here’s how to tell.

French IT services giant Capgemini brought home €11.426 billion in revenue during the first six months of 2023, a solid 7.9% improvement from last year at constant exchange rates.

Executives said the growth was driven by increased fee income from “high added-value services”. This appears  to be Capgemini’s term for IT projects involving technologies such as AI, analytics and cloud computing that are usually high up on CIOs’ shopping lists.

Capgemini sees further growth opportunities in this area and will double down to address them. The consultancy told investors after releasing its first-half results that it will spend €2 billion over the next three years to bolster its AI capabilities.

Part of that money will go towards doubling the headcount at Capgemini’s AI and data practice, which currently has 30,000 employees. It’s not plausible for the consultancy to hire another 30,000 AI and data specialists within the initiative’s 3-year time frame, which means it probably plans to double the practice’s headcount by retraining existing staff.

Capgemini will also train “most” of the rest of its workforce in using generative AI. That presumably means it will teach workers how to utilize chatbots to automate mundane office chores.

Besides laying out Capgemini’s growth plans, executives also gave investors a unit-by-unit breakdown of its sales performance in the first half of the year. That breakdown offers some interesting insights into where the consultancy’s growth is coming from.

Capgemini experienced the strongest growth in Europe, which accounts for more than half of its worldwide fee income. The company’s business unit in France experienced 9.2% revenue growth, while its fee income in the rest of mainland Europe, the U.K. and Ireland jumped by more than 10%.

That demand surge was partly offset by a slowdown in orders from U.S. clients. Even so, Capgemini and its investors have little reason to complaint about its first quarter results.

The firm’s robust revenue growth had a positive effect on its profitability. Capgemini’s accountants determined that its net profit worked out to €809 million in the first half of 2023, an impressive 21% increase from the year-ago period.

The consultancy reaffirmed its profit and revenue projections for the latter half of 2023, ensuring investors they have no reason to worry about its near-term financial performance. Capgemini logged bookings of €11.968 billion during the first six months of the year that will turn into revenue in the near to medium future.

text

text