On Thursday, French IT consultancy firm Capgemini (CAPP.PA) reported poorer revenue growth in the first quarter of 2023 than a year earlier, blaming a tight economic situation with customers taking a “wait-and-watch stance.”
Still, revenue was 5.73 billion euros ($6.35 billion), 10.9% higher than in 2022’s first three months.
During the pandemic, cloud services were one of the biggest growth drivers for tech companies.
Investors also wonder if a capacity surplus could cause corporations to decrease investment as inflation rises and interest rates rise, squeezing consumer demand.
Alphabet (GOOGL.O), Microsoft (MSFT.O), Meta (META.O), and Amazon (AMZN.O) cut employees during the sector slump.
After increasing its personnel by 11% in 2022, consulting, digital, technical, and engineering firm Capgemini announced intentions to slow recruiting in February, citing weak demand for AI, data, and cloud services.
With 357,000 employees, growth slowed to 5% in March.
