The results for Capgemini in H1 were recently announced in a video interview from Group CEO, Paul Hermelin. Released on 25 July, many analysts confirmed a positive set of results, especially in light of the economic situation in Europe.
UK headline figures: revenue of €1.01 billion, with operating margin of €82 million (8.1%). (This revenue figure is down 2.2% on last year). Headcount continued to grow, this time at a rate of 1.7% since the beginning of 2013 – we know have over 9,000 employees in the UK. The current focus in Whitehall of reducing spend with large IT suppliers has contributed to a reduction in revenue from Aspire, which is reflected in the lowered Group figure for public sector sales of -7.3%. On a more positive note, there is a 128% increase in pipeline deals greater than €50 million, in addition to an improved win rate. Private sector sales in the UK have also been increasing rapidly.
The Financial Times [subscription required] commented on the Group’s achievement of passing the €10 billion revenue milestone for the first time, while the Global Post focused on Capgemini’s expansion in Asia. ChannelWeb pointed to the rising revenues of ‘IT Services Titan’ Capgemini in the Outsourcing market, as well as similar gains by some of our competitors.
Paul Hermelin’s own video roundup of the results itself provides an insight into Capgemini’s strategy. Firstly, he speaks about energising the Group pyramid, and the importance of hiring graduates, saying that: “young graduates are the energy we need to bring the momentum, the mindset, the fire to the company.” Good news for graduate job hunters.
He also iterates the Innovation agenda for the Group. Hermelin points to IP solutions (aided by the acquisition of Prosodie, a provider of front office services, and the newly-launched Skysight, a next generation cloud orchestration service ) as well as other ‘strong alliances’ in place with suppliers such as Amazon Web Services and NetSuite.