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BENGALURU:French IT firm Capgemini’s offshore headcount has dropped by 14,600 in the September quarter and India is one of the key markets that would be witnessing a sharp decline in many years.
Capgemini had 1,85,000 employees in India comprising less than 50% of its total 342,700 people. Some sources said that its India headcount might have shrunk by nearly 7,000 employees this time around, after it added 35,000 people in 2021-22.Capgemini’s offshore headcount dropped 7% to 1.96,000 employees in the September quarter. Its onshore employee base dipped by 1,100.
Its CFO Carole Ferrand, in the earnings call, said, “As discussed with you on many occasions in the past quarters, after 2 years of intensive hiring and higher attrition, our priority for 2023 was to regain efficiency and optimize our talent base, especially in offshore locations. Finally, as anticipated, attrition has continued to cool down at 18.6% on the last 12-month basis, attrition is now within our nominal operating ranges.”
When TOI reached out to Capgemini, its spokesperson said, “At Capgemini, we have adopted a stable hiring approach this year, given the challenging economic environment. After two years of intensive hiring, our priority for this year was to optimize our talent base. During this process, our emphasis has been on investing in new skills, fostering innovation, and expanding our portfolio. We will continue to hire the right talent as we maintain a positive long-term outlook.” Capgemini, however, didn’t disclose India’s headcount after reducing its employees offshore.
Its CEO Aiman Ezzat said Capgemini has more than 30,000 people in data and AI, business, and technology talent. “We intend to double that team to 50,000 people in the next 3 years. We continue to invest in building and upskilling our people. So, our campus to scale up training on genAI is now fully in operation for all our employees and more specifically, we aim to train over 100,000 in genAI specific tools in the coming 12 months.”
Capgemini’s revenue in the September quarter rose 2.3% year-on-year in constant currency. Revenue in the North America region was down by 4%. “The economic environment remains challenging, and this growth is consistent with the gradual deceleration scenario for 2023 that we shared with you at the beginning of the year,” he said in the earnings call.
Ezzat said the dual transition to a digital and sustainable economy continues to be at the top of its clients’ strategic agendas. “Demand for generative AI accelerated in the third quarter with over 100 projects signed and a strong pipeline. As part of our 2 billion euros investment plan announced in July, we launched our genAI campus to scale up training for all our employees.”
Capgemini had 1,85,000 employees in India comprising less than 50% of its total 342,700 people. Some sources said that its India headcount might have shrunk by nearly 7,000 employees this time around, after it added 35,000 people in 2021-22.Capgemini’s offshore headcount dropped 7% to 1.96,000 employees in the September quarter. Its onshore employee base dipped by 1,100.
Its CFO Carole Ferrand, in the earnings call, said, “As discussed with you on many occasions in the past quarters, after 2 years of intensive hiring and higher attrition, our priority for 2023 was to regain efficiency and optimize our talent base, especially in offshore locations. Finally, as anticipated, attrition has continued to cool down at 18.6% on the last 12-month basis, attrition is now within our nominal operating ranges.”
When TOI reached out to Capgemini, its spokesperson said, “At Capgemini, we have adopted a stable hiring approach this year, given the challenging economic environment. After two years of intensive hiring, our priority for this year was to optimize our talent base. During this process, our emphasis has been on investing in new skills, fostering innovation, and expanding our portfolio. We will continue to hire the right talent as we maintain a positive long-term outlook.” Capgemini, however, didn’t disclose India’s headcount after reducing its employees offshore.
Its CEO Aiman Ezzat said Capgemini has more than 30,000 people in data and AI, business, and technology talent. “We intend to double that team to 50,000 people in the next 3 years. We continue to invest in building and upskilling our people. So, our campus to scale up training on genAI is now fully in operation for all our employees and more specifically, we aim to train over 100,000 in genAI specific tools in the coming 12 months.”
Capgemini’s revenue in the September quarter rose 2.3% year-on-year in constant currency. Revenue in the North America region was down by 4%. “The economic environment remains challenging, and this growth is consistent with the gradual deceleration scenario for 2023 that we shared with you at the beginning of the year,” he said in the earnings call.
Ezzat said the dual transition to a digital and sustainable economy continues to be at the top of its clients’ strategic agendas. “Demand for generative AI accelerated in the third quarter with over 100 projects signed and a strong pipeline. As part of our 2 billion euros investment plan announced in July, we launched our genAI campus to scale up training for all our employees.”
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