‘Our next growth phase will be driven by the intelligent industry’

Bangalore : French IT services major Capgemini is betting big on the so-called intelligent industry, which refers to the next phase of digital transformation driven by data, 5G, edge computing, artificial intelligence (AI) and the Internet of Things (IoT). It has also made several acquisitions to further this agenda. The company has raised its revenue growth target for 2021 to 14.5-15% in constant currency based on strong third quarter earnings. India is Capgemini’s largest talent hub, with a total workforce of over 150,000 out of 309,300. In an interview, Capgemini CEO in India, Ashwin Yardi talks about growth outlook, acquisition strategy and what he means by intelligent industry. Edited excerpt:

What gives Capgemini the confidence to raise its 2021 revenue growth outlook?

The IT Services market is expanding at an exponential pace globally as well as in India. The adoption of emerging technologies such as cloud, data analytics and AI, engineering and research and development (R&D), blockchain, cyber security, 5G and EDGE is a key growth driver. Every industry around the world is focusing on digitizing key industrial parts of their businesses, using more embedded software, data, AI, new generation wireless connectivity and other digital technologies to rethink the products and processes they use. What they offer to customers, rethink their own operations and inventions. New services and business models.

Capgemini’s revenue growth outlook reflects the strong growth achieved across sectors and sectors in Q3 and the past few quarters. The next phase of growth will be driven by what we at Capgemini call the intelligent industry. Businesses that adopt an intelligent industry approach will see a wide range of benefits such as new and differentiable products, lower costs, increased efficiency of production, new business models as a service and faster time to market. This is also a testimony to our focused strategy and the portfolio transformation we have made over the years.

Will 5G be a major focus area for Capgemini in India?

At Capgemini, we recognize the power of 5G powered by edge computing and how it can revolutionize industries across a range of sectors. We recently announced our collaboration with Qualcomm Technologies to unlock the benefits of 5G private networks to support their customers’ digital transformation toward an intelligent industry. Edge computing and 5G will be the technologies that catalyze the data-driven transformation towards the intelligent industry. They will transform the way enterprises, governments and consumers interact and do business, paving the way for path-breaking innovations and services. As part of Capgemini’s global collaboration with Ericsson, Capgemini will deploy 5G solutions from Ericsson at its 5G lab in Mumbai to enable the deployment of 5G and edge technologies for industry experiments and customers across industries. The Capgemini 5G Lab is fully in line with Ericsson’s Industry Connect strategy. It provides live demos for many use-case applications across industries.

How is the Altran acquisition helping your engineering and R&D capabilities?

Earlier this year, we launched Capgemini Engineering, which strengthens our market-leading capabilities in engineering and R&D. This global business line with 52,000 engineers and scientists and a presence in all major engineering centers around the world builds on the integration of Altran, a year after its acquisition by Capgemini. With the integration of Altran and Capgemini Engineering, we now have full capabilities in both industrial and digital technologies to design, develop and deliver the products and services of tomorrow. Capgemini can now help every type of organization develop intelligent products and systems, intelligent operations, and intelligent support and services, all driven by data, and tailored to their specific business and operational challenges. This is what we call intelligent industry, which is the next generation of digital transformation.

Will we see more such acquisitions?

Historically, Capgemini has made several acquisitions and we have been able to successfully integrate and leverage the capabilities to grow through these acquisitions. In addition to the acquisition of Altran last year, we also completed the acquisition of Australia-based RXP Services in March. The unique combination of expertise makes Capgemini the market leader in Australia and New Zealand in digital, data and cloud and supports the group’s growth ambitions in the Asia-Pacific region.

In July, Capgemini announced an offer to acquire Australian cloud transformation and digital services provider Empired. This acquisition will significantly increase the size of Capgemini’s business in Australia and New Zealand. In the same month, Capgemini also acquired leading Australian SAP consulting and digital solutions provider Acclimation, which will strengthen Capgemini’s partnership with SAP in Australia and accelerate customer business transformation. Capgemini has also acquired Multibook’s SAP services business in Japan and Southeast Asia, which will enable us to serve more customers in Japan and support the group’s growth ambitions in the Asia-Pacific region.

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