Capgemini, a global leader in consulting, technology services, and digital transformation, has released its first half (H1) 2024 results.
Capgemini’s organic free cash flow increased significantly. In H1 2024, it reached €163 million, up by €216 million compared to the previous year. This positive cash flow demonstrates the company’s financial strength and adaptability.
The company posted a 5.4% year-on-year decline in revenue from the North America region in the first half of the year, slower than the 7.1% fall seen in the first three months of 2024.
The market was the second biggest for the group, accounting for 28% of its revenue in the first half of the year. It was a drag on Capgemini’s results last year as well, amid a tech sector downturn.
Capgemini adjusted its constant currency revenue growth target for 2024. It now aims for a range of -0.5% to -1.5% (previously 0% to 3%).
CEO, Aiman Ezzat, said in a press call that North America was the region showing the strongest recovery between the first and second quarters.
Capgemini H1 Results: Headcount
The Group’s total headcount at Capgemini stands at 336,900 as of June 30, 2024. Decrease of 300 employees from Q1, and the headcount was 337,200 at the end of March 2024.
This also represents a 4% decrease year-on-year. On June 30, 2023, the Group’s total headcount stood at 349,500.
Notably, the headcount has remained virtually stable since the end of March. Within this workforce, the offshore segment comprises 192,500 employees, accounting for approximately 57% of the total headcount.
Attrition has continued to slow down over the past quarter, resulting in a 12-month attrition rate of 15.2%. Currently, the attrition rate remains stable at this level.
Regarding attrition, CEO, Aiman Ezzat commented, ‘Currently, the attrition rate is stable. Over the past 12 months, it has been consistently decreasing, indicating that this quarter’s rate is quite low, even below our operating environment at times. If there is a slight increase, it shouldn’t be seen as a negative sign.”
“Overall, we anticipate a favorable environment due to the abundance of resources in the market. Even if there is some acceleration in attrition over the next two to four quarters, we do not expect it to have a significant impact on our attrition rates.” He added.
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