Capgemini posted impressive results for Q4 16.7% growth and for the whole of 2020 12.2% growth (13.7% at constant currency, -3.2% organic – the top line figure includes the acquisition of Altran). Operating margin remained fairly stable at 11.9% for the year down slightly from FY2019. Given the impact of COVID on all of Capgemini’s major markets this is a solid performance.
Atos top line performance was not as good with a drop in Q4 revenue of -5.3%, although operating margin improved to 10.6%. However, revenue growth for the year was -3.5% (2.3% at constant currency and 3.0% organic) which is inline with many of the other market players.
Exhibit 1 shows the leading digital IT services companies ranked by revenue for 2020 – this list is preliminary and will be updated to include additional players as the December 2020 end quarterly results are published. But the top 10 should be pretty stable at this point. Incidentally, you can find more interactive charts with more detail on the industry analysis page and in past blogs – these charts all get updated as new results are published.
Exhibit 1 – Digital IT Services Ranking 2020
[iframe width=”640″ height=”820″ seamless frameborder=”0″ scrolling=”no” src=” https://public.tableau.com/views/EarlyBirdRev2/PreliminaryLeadingDigitalServices?:language=en-GB&:display_count=y&publish=yes&:origin=viz_share_link&:showVizHome=no&:embed=true”]
Source: Market Prescience Analysis of Company Financials. All quarters as a close to calendar quarter as possible.
As you can see Accenture has taken the top spot for 2020, with IBM at number 2 when you combine its current services businesses together.
Infosys strong growth in 2020 has enabled it to take the number 9 spot from Atos and Capgemini’s purchase of Altran has helped it climb to 7th place above Cognizant.
You can see a clearer summary of the quarterly performance in Exhibit 2. This chart shows the results for each supplier in calendar Q4 2020 on a grid comparing operating margin against revenue growth.
Exhibit 2 – Digital IT Services quarterly results Q4 2020 (Calendar)
[iframe width=”600″ height=”600″ seamless frameborder=”0″ scrolling=”no” src=”https://public.tableau.com/views/EarlyBirdRev2/SupplierPerf?:language=en-GB&:display_count=y&publish=yes&:origin=viz_share_link&:showVizHome=no&:embed=true”]
Source: Market Prescience Analysis of Company Financials. All quarters as a close to calendar quarter as possible.
We expect to get the complete picture of results next week – when the last of the suppliers publish.
If there is anything you’d like to see included in these charts please feel free to contact us and let us know.
