Capgemini finds clients going conservative as economic factors weigh

Industry body NASSCOM says 2022 was a year of a steady growth of 11.4 percent in constant currency terms. The domestic market witnessed strong growth but travel and utilities haven't picked up as expected. NASSCOM further estimates the Indian tech industry to grow to $245 billion in FY23.

On the sidelines of the NASSCOM Tech Forum, Capgemini, a leading global consulting, technology, and outsourcing firm has reported that its clients are becoming increasingly conservative as economic factors weigh on their decision-making processes.

Ashwin Yardi, CEO of Capgemini, recently told CNBC-TV18 that clients are looking for ways to save costs and are cautious due to macroeconomic factors. Despite this, Yardi emphasized that Capgemini remains optimistic about the future.

“There is some conservatism in the market. But we are reasonably bullish on the market. The mood is quite optimistic and positive for 2023,” he said.

Yardi stated that Capgemini's clients are being cautious in their spending, particularly in the hi-tech and B2C sectors. However, he noted that 2022 was a great year for the company, with a 16.5 percent growth in revenue.

“2022 was the best year we have had almost 22 billion euros in revenue, that was 16.5 percent growth, one of the highest following eight quarters of double-digit growth,” he said.

Capgemini also delivered strong cash and profitability numbers and ended the year with strong momentum on bookings.

Despite the current conservative climate, Yardi expressed confidence in Capgemini's future prospects. He stated, "We are reasonably bullish on the market," and that the company's CY23 guidance is expected to be 4-7 percent, compared to 16.6 percent in CY22.

The current economic climate is undoubtedly challenging for businesses, and Capgemini's experience is reflective of this. However, the company's strong performance in 2022 is a testament to its resilience and adaptability.

By delivering strong financial results and maintaining a positive outlook, Capgemini is well-positioned to navigate the current economic climate and continue to thrive in the years to come.