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Capgemini CEO: AI, Sustainability Services Influence Annual Revenue Growth

February 14, 2024 by Joe Panettieri

Capgemini delivered record financial performance in 2023, and some of the credit involves the company's focus on artificial intelligence (AI) and sustainability services, CEO Aiman Ezzat (pictured above) indicated in an earnings release.

Capgemini, based in Paris, France, is a global IT consulting business. The company had roughly 340,400 employees worldwide as of December 2023.

Capgemini is organized around three focus areas:

  • Strategy & Transformation Consulting Services: 9% of overall company revenues.
  • Applications & Technology Services: 62% of overall revenues.
  • Operations & Engineering Services: 29% of overall revenues.

Capgemini positions itself as "a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society." Translation: Sustainability is core to the company's customer strategy.

Capgemini: AI and Sustainability Investments

In the artificial intelligence (AI) market, Ezzat said: "We are positioned as a leading player enabling our clients to explore, test and scale solutions for tangible business impact. Through our €2 billion investment plan announced last July, we continue to strengthen and upskill our teams, invest in solutions and leverage a broad ecosystem of technology partners including Microsoft, Google, AWS, Salesforce and Mistral AI."

And on the sustainability front, Ezzat added: "In terms of sustainability offerings, we also stepped up our efforts in 2023. We continue to help our clients accelerate their transition towards Net Zero through strategy definition, business model adaptation and design of sustainable products and services. 2023 was also an important year on our own ESG roadmap, with major progress achieved towards a more sustainable and inclusive world."

Capgemini's overall ESG strategy is outlined here.

Sustainability Services: Facing Some Headwinds?

Capgemini's overall financial results for 2023 included:

  • Revenue of 22.5 billion, up 2.4% from 21.9 billion in 2022.
  • Net profit of 1.7 billion, up 7% from 2022.

Still, "persistent macroeconomic challenges and rising geopolitical tensions led to a gradual market slowdown in 2023 that came in line with the company's expectations," Capgemini said.

Amid that backdrop, Capgemini hinted that sustainability-focused services could face some market headwinds. The Q4 2023 earnings release stated: "While large corporations and organizations hold firm on their digital and sustainability ambitions, they are increasingly prioritizing operational agility and cost efficiency. This translates into strong demand for transformation programs with short payback, which leverage the Group’s high value-added service offerings most notably in Intelligent Industry, as well as in activities driven by Cloud, Data & Artificial Intelligence."

Capgemini: Business Outlook for 2024

Capgemini's said its financial targets for 2024 are:

  • Revenue growth of 0% to +3% at constant currency;
  • operating margin of 13.3% to 13.6%; and
  • organic free cash flow of around €1.9 billion.

We'll be watching for actual financial results throughout 2024, and the associated role that sustainability potentially plays in Capgemini's revenues and profits.

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