CI&T Q1 is experiencing rapid growth in digital transformation services
Digital transformation has lately been in great demand due to the pandemic that changed the world significantly. And CI&T bagged a lot of cash out of the digital transformation services.
They started their journey in 1990 from Brazil and now share a global headquarter in New York. In the past few weeks, CI&T has globally provided their clients with fulfilling their demands and increased their yearly revenue at the same time. As the COVID-19 has set the world into another dimension and changed our business markets and strategies, people needed someone to guide them through the new world. Digital transformation was the key to developing our lives and making them fit into the post-pandemic realm.
This allowed CI&T Q1 to get enough clients to rapidly grow its digital transformation services. Hence, their revenue and earnings reached the roof. Bruno Guicardi, the founder and CEO of CI&T, has shared his opinions on this matter, “This is a market with a lot of demand for digital transformation services. This is probably the fastest-growing category in technology services. There are probably a half-dozen companies in this category.” He also added about the drastic growth every GSP (Global Solution Provider) company like Accenture and IBM Global Services is gaining, “Everybody’s growing. We’re growing the fastest. We’re the fastest among the very fast.”
Right now, most companies are looking to go digital. You can’t blame them, as the world has mostly gone online. Online businesses are blooming now more than ever. To be more precise, the world has done its digital transformation, and now it’s the turn to transform accordingly. About clients going more digital, Guicardi has reflected, “Our clients are trying to engage their customers and users digitally. Some compete with digital natives and are being forced to move faster. They are feeling the heat transform.” Bruno Guicardi further added, “We have retailers who compete with Amazon looking to leverage digital to reach their customers. And we have customers like Anheuser-Busch InBev who may not sell directly to consumers but who reach consumers digitally.”
As CI&T is a GSP company based in Brazil, most of its clients are from Brazil. The New York clients are more likely to rely on GSP Logistics, IBM Global Services, and CI&T doesn’t have any branch in the Asia continent, so the Asians are primarily dependent on Tata Consultancy Services (TCS). However, that didn’t stop their growth in transforming their clients to digital. Brazilian clients are almost reliant on them in every possible way for digital transformation services. Thus, their earnings have been prospering throughout the whole year.
Bruno Guicardi has promised to make more acquisitions to gain more growth. He believes that organic growth is more significant for CI&T than acquisition growth. His exact words were, “We will make more acquisitions. It was part of the plan for the proceeds from the IPO. Hopefully, we will complete a couple more before the end of the year.” He also gave hope to stay in the competition until the very end, “As we say in Brazil at soccer games, ‘You can’t say the game is done until the final whistle.’”
Digital transformation services are like a gamble. The system and procedures are constantly changing. It might take only a few days for a business trend to get changed completely. “We don’t see change necessarily every year, but we’ll see us completely changed in five years. For instance, we’ve started working with NFTs, crypto, and blockchain for clients supporting the crypto side of the business.”
In North America, meaning in the United States, the sales weren’t comparable with other GSP companies originating from the US. But if we look up CI&T’s total revenue growth, North American clients have contributed 41.9% of the total revenue in the first quarter of 2022. Bruno Guicardi gained only 60.1 million US dollars in the first quarter of 2021, whereas in 2022’s first quarter, which lasted till 31 March, they earned 99.7 million US dollars, 66% more than 2021’s first quarter.