Capgemini finds it ‘comfortable’ with its top end 2022 targets, but the demand is slowing. By Stocksak

© Stocksak. FILE PHOTO – Capgemini’s logo is seen at its headquarters in Paris, France on August 3, 2021. REUTERS/Benoit Tessier

By Dagmarah Mackos

(Stocksak). Capgemini, a French IT consulting company, sees a slowing demand in 2023 but expects to achieve top guidance this year because of its cloud, data, and artificial intelligence businesses.

Aiman Ezzat Chief Executive stated that although demand may slow in the future, the group remains confident that 2023 is a year full of growth, even though it will not be as strong as 2022.

His comments are made amid growing concerns that an economic slowdown could impact IT budgets following the gloomy results of tech giants Alphabet Inc (NASDAQ:) Inc. Microsoft Corp (NASDAQ:).

Analysts said that the company projects revenue growth of 14% to 15% in 2022 on a constant-currency basis. They also expect an operating margin of 12.9%-13.11%. Analysts suggested that this could be considered conservative, given healthy demand.

Capgemini shares fell more than 2% by 0727 GMT

Carole Ferrand, chief financial officer of the company, stated that the company expects growth to be around 10% in the fourth quarter.

The group reported third-quarter revenues of 5.55 Billion Euros ($15.8 Billion), an increase 15.7% compared to the same period last year at constant exchange rate. The quarter saw an increase of 13% in bookings to 5.43 billion euros.

“Given our Q3 performance, we feel confident with the top end growth outlook for this year.”

2022,” Ezzat said in the company’s statement.

It increased its workforce 16% each year, reaching 358,400 by September.

The group also stated that it will reduce its hiring as the market stabilizes and growth slows.

Due to the shortage of IT specialists, many companies have had to raise wages in order to attract new talent to a competitive market.

($1 = 0.9936 euros)

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