{"id":33573,"date":"2023-05-04T07:54:47","date_gmt":"2023-05-04T07:54:47","guid":{"rendered":"https:\/\/lynettelockhart.com\/client\/capgemini-posts-weaker-revenue\/"},"modified":"2023-05-04T08:20:04","modified_gmt":"2023-05-04T08:20:04","slug":"capgemini-posts-weaker-revenue","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/capgemini-posts-weaker-revenue\/","title":{"rendered":"Capgemini posts weaker revenue growth in first quarter"},"content":{"rendered":"

By Matteo Allievi and Victor Goury-Laffont<\/p>\n

(Reuters) – French IT consulting group Capgemini on Thursday reported weaker revenue growth in the first quarter of 2023, compared with the year-ago period, citing a tense economic environment with clients adopting a “wait-and-watch stance”.<\/p>\n

Still, the company’s quarterly revenue reached 5.73 billion euros ($6.35 billion), 10.9% above the first three months in 2022.<\/p>\n

Cloud services for years have been one of the largest sources of growth for some of the biggest tech companies, but investors are now looking to see whether there is a glut in capacity that will lead to investment cuts as companies deal with rising costs amid soaring inflation, while interest rate hikes have squeezed consumer demand.<\/p>\n

The sector downturn forced tech giants including Alphabet, Microsoft, Meta and Amazon to slash jobs.<\/p>\n

Capgemini, which offers consulting, digital, technical and engineering services, in February announced plans to ease hiring after growing its workforce by 11% in 2022, pointing to the sluggish demand for artificial intelligence, data and cloud services.<\/p>\n

At the end of March, the pace of expansion had dropped to 5% year-on-year with a headcount of 357,000 workers.<\/p>\n

“We will start recruiting again later this year to achieve our growth targets”, Capgemini’s CEO Aiman Ezzat told reporters.<\/p>\n

The Paris-based company reiterated its outlook for 2023, pointing to revenue growth in a range between 4% and 7% in constant currency terms, down from a 21.1% increase in 2022, and an operating margin between 13.0% and 13.2%.<\/p>\n

“The economic context remains tense (…) It’s all about postponements, but our clients’ agenda hasn’t changed, digital transformation remains their priority”, Ezzat added.<\/p>\n

Growth in new hires remains strong in tech products, the CEO specified, including research on generative AI.<\/p>\n

Late last month, German competitor SAP announced\u00a0plans to embed OpenAI’s chatbot ChatGPT into its products.<\/p>\n

Capgemini remains more cautious on AI development, with Ezzat stating that “when adopting a new technology, it takes times to find the specific ways of using it to generate high margins”.<\/p>\n

($1 = 0.9024 euros)<\/p>\n

\n

(This story has been refiled to fix story formatting)<\/p>\n

\n

(Reporting by Matteo Allievi and Victor Goury-Laffont in Gdansk; Editing by Muralikumar Anantharaman, Sherry Jacob-Phillips and Kim Coghill)<\/p>\n

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By Matteo Allievi and Victor Goury-Laffont (Reuters) – French IT consulting group Capgemini on Thursday reported weaker revenue growth in the first quarter of 2023, compared with the year-ago period, citing a tense economic environment with clients adopting a “wait-and-watch stance”. Still, the company’s quarterly revenue reached 5.73 billion euros ($6.35 billion), 10.9% above the […]<\/p>\n","protected":false},"author":8,"featured_media":33574,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-33573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ4302Y-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=33573"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33573\/revisions"}],"predecessor-version":[{"id":33608,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33573\/revisions\/33608"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/33574"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=33573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=33573"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=33573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}