(Reuters) -Capgemini, a French IT consulting company, said on Tuesday that its revenue growth will be slower in 2023. This is because demand for its cloud, data, and AI services is slowing because the economy as a whole is uncertain.
The company, which provides services to industries like telecoms and aerospace, expects its revenue to grow between 4% and 7% in constant currency this year, compared to the 16.6% growth it reported for 2022.
“We ended 2022 with good momentum, even though the economy wasn’t doing so well,” said Chief Executive Aiman Ezzat in an earnings report.
Last year, the group’s revenue reached 22 billion euros, which is about $23.48 billion. On the other hand, its bookings reached 23.7 billion euros, which is an increase of 16.8% when exchange rates are held constant.
Capgemini, which offers consulting, digital, technical, and engineering services, said at the end of December that it had 359,600 employees, which is 11% more than it had a year ago.
The results come at a time when IT companies like U.S. giants Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) are cutting jobs because of slowing growth, rising inflation, and the threat of a recession.
The Paris-based company also predicted that its operating margin would be between 13.0% and 13.2% in 2023 and that its organic free cash flow would be around 1.8 billion euros.
($1 = 0.9371 euros)
