Opening the cork and celebrating digital forces

The IT major has been showing many geography-led initiatives and future-forward collaborations while sharpening its tool-kit on AI, Cloud and Metaverse areas

Revenue

Rs 191,625 mn

A 50-year legacy in business transformation and as a strategic partner to many companies across the globe (almost 50 countries). Where does it go next? Simple – wherever the future is. Like Web3, connectivity, digital engineering and intelligence.

The IT major has been showing many geography-led initiatives and future-forward collaborations from what we see in the last few months’ action track. It is getting under the hood of both existing vehicles and supercars and is also sharpening its tool-kit on AI, Cloud and Metaverse areas.

Its numbers for Q3 2022 show that Group revenues grew 15.7 percent at constant exchange rates to €5,553 million, and organic growth (i.e. excluding the impacts of currency fluctuations and changes in Group scope) reached +14.3 percent. For the first nine months of the year, growth hit +22.5 percent on a reported basis and +17.5 percent at constant exchange rates, while organic growth stood at +16.2 per cent. When we look at revenues in the Asia-Pacific and Latin America region, we see it as nine per cent of Group revenues. This part increased by +24.1 per cent at constant exchange rates.

“We continue to see double-digit growth across geographies and business lines, and to gain market share in digital transformation. We are reaping the benefits of our strategy and market positioning, with our unique capabilities from consulting to technology and engineering combined with relevant industry expertise. As a strategic business and technology partner, we bring industry-specific solutions that create concrete business outcomes across the whole value chain of our clients’ organization.”

— Aiman Ezzat, Chief Executive Officer of the Capgemini Group

Among focus areas of business, we saw that Cloud and Data stay at the core of the digital transformation projects of Capgemini’s clients, both for growth initiatives and for optimizing costs. Also significant, in terms of growth-momentum, were areas like Intelligent Industry and Customer First business. For Asia-Pacific and Latin-America regions, areas like Financial Services and Manufacturing sectors were prominent ones. Overall- notable growth came from transformation, applications and engineering. Applications & Technology services was on the top post with 62 per cent of Group revenues and Capgemini’s core business, reporting growth of +15.9 per cent at constant exchange rates. There has been sustained client demand for modernizing and optimizing their digital environment. Next was Operations & Engineering services with 30 per cent of Group revenues and it grew +13.8 per cent at constant exchange rates. Core drivers came from robust Engineering and Cloud infrastructure services. The results show that strategy & Transformation services formed eight of Group revenues in Q3 2022) and posted a very strong growth of +28.5 per cent at constant exchange rates.

Its H1 2022 revenues were reported at €10,688 million, up +22.7 per cent showing growth at constant exchange rates of +18.5 per cent in H1 and +19.3 per cent in Q2. Here, revenues in the Asia-Pacific and Latin America region (nine per cent of Group revenues) increased sharply by +41.5 per cent at constant exchange rates.

There is a strong a book-to-bill ratio of 0.98 and in terms of financial targets for 2022, the company is aiming for a revenue growth of +14 per cent to +15 per cent at constant currency

Among other such strides, the company seems to be expanding on specific geographies and expertise areas. With Capgemini Netherlands and Europol signing a mutual framework for co-operation on tackling cyber threats, a new dimension has been added to its cybersecurity area as well.

The company has envisaged high demand areas of cloud, data and AI, Intelligent industry and cybersecurity, and is also accelerating its investments in the future with specific focus on sustainability, quantum computing and metaverse. Let’s see how it opens the cap of the future of technology.

Key Acquisitions and Partnerships

• The company has added many strengths in the last few months to deepen its domains.

• It acquired Quantmetry for enhancing its AI and data consulting capabilities in France

• It acquired Quorsus for building capital markets service expertise

• It added more data and analytics capabilities in Germany with Braincourt GMbH

• It has collaborated with Microsoft in the cloud-native digital twin offering

• It acquired Aodigy Asia Pacific Pte Limited for digital transformation capabilities in Asia Pacific and Salesforce ecosystem

• It partnered with Unity (strong in real-time 3D (RT3D) content capabilities) for Web 3, metaverse and immersive experiences

• It collaborated with VMware on Cloud Business Orchestration Solutions

• It also shared plans to open semiconductor design services centers across Europe to support Intel’s strengthened program of chip manufacturing and ecosystem design services

• It launched a new research project with the University of Oxford on safety and human factors of interactions with AI autonomous systems

Key Wins and Partnerships

• Panasonic Automotive Systems Company of America on transformative new data platform

• France Televisions for technology transformation

• Mercedes Benz for Big Data platform for Automated Driving

• Spanish Hospitals like Hospital 12 de Octubre and Hospital Ramón y Cajal, in Madrid, and Hospital Sant Pau in Barcelona for AI platform

• Peugeot Sport for development of hybrid hypercar with data and AI tools

• Airbus for a large-scale Cloud transformation implementation

Ashwin Yardi

CEO, Capgemini India

By Pratima H

pratimah@cybermedia.co.in