(Reuters) -French IT consulting group Capgemini on Tuesday forecast weaker 2023 revenue growth due to slowing demand for its cloud, data and artificial intelligence services in the uncertain macroeconomic environment.
The company, which provides services to industries ranging from telecoms to aerospace, expects its revenue to grow between 4% and 7% in constant currency this year, compared with the 16.6% growth it reported for 2022.
“We ended 2022 with good momentum despite a less favorable economic environment,” Chief Executive Aiman Ezzat said in an earnings statement.
The group’s revenue reached 22 billion euros ($23.48 billion) last year, while its bookings totalled 23.7 billion euros, an increase of 16.8% at constant exchange rates.
Capgemini, which offers consulting, digital, technical and engineering services, said it had increased its workforce by 11% year-on-year, reaching a headcount of 359,600 at the end of December.
The results come at a time when slowing growth, soaring inflation and a looming recession have pushed IT companies including U.S. giants Alphabet, Microsoft and Amazon to slash jobs.
The Paris-based company also forecast 2023 operating margin in a range of 13.0% to 13.2%, and organic free cash flow of around 1.8 billion euros.
($1 = 0.9371 euros)
(Reporting by Lina Golovnya in Gdansk; Editing by Milla Nissi)
