IGATE helps Capgemini to grow revenue better in 2015

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IT services provider Capgemini said its revenue reached €11,915 million (+12.7 percent) with a net profit of €1,124 million (+94 percent) in 2015.

Excluding the impact of fluctuations in Capgemini Group currencies against the euro and changes in Group perimeter, primarily the integration of IGATE purchased during the year, revenues grew 1.0 percent.

In 2015, Capgemini acquired small rival IGATE.

Meanwhile, Capgemini announced the acquisition of Fahrenheit 212, an innovation strategy and design firm to augment its digital customer experience solutions.

Based in New York City and London, Fahrenheit 212 will contribute its capabilities for innovation strategy and consumer-centric design to the offerings of Capgemini Consulting.

Capgemini said its Digital and Cloud offerings grew 23 percent in 2015 and account for 22 percent of revenues. “These domains will remain in our top priorities for investments in 2016,” Capgemini CEO Paul Hermelin said.

Capgemini forecasts revenue growth of 7.5 percent to 9.5 percent in 2016.

Revenue from Capgemini’s Consulting services (4 percent of Group revenues) rose 5.8 percent driven by North America, UK and Rest of Europe.

Local professional services (15 percent of Group revenues) revenue rose 0.3 percent with growth in the UK and Benelux compensating the drop in activity in the aerospace sector.

Application services (59 percent of Group revenues) growth was 6.3 percent driven by investment in innovation around Digital and Cloud with main growth in North America, Rest of Europe and the private sector in the UK.

Capgemini says other managed services (22 percent of Group revenues) revenue fell 10.9 percent due to the expected decrease in revenues from a major contract in the public sector in the UK which impacted infrastructure services.

North America, with 28 percent of Group revenues, is now Capgemini’s first region thanks to strong organic growth and the acquisition of IGATE on July 1, 2015.

Revenues in North America grew 7.8 percent thanks to the appreciation of the US dollar against the euro and the acquisition of IGATE. All sectors contributed to these results particularly the retail and consumer goods which grew over 20 percent.

Capgemini says its employee base rose to 180,639 from 143,643 in 2014, representing a net increase of 26 percent, driven by the IGATE integration.

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