(Reuters) -Capgemini, a French IT consulting firm, said that inflationary pressures will probably limit the gains in this year’s operating margin. The company reported strong results Monday.

This firm provides services in a variety of industries, including aerospace and telecommunications. It expects an operating margin of between 12.9% and 13.1% for 2022, as well as revenue growth of around 8%-10% constant currency.

It posted an operating margin in 2021 of 12.9% on revenues of 18.16 billion euro ($20.52billion), a return to pre-pandemic levels. This was up 15.1% when constant currency is used.

Capgemini claimed that the inflation of salaries would limit margin improvements and the company anticipated higher travel costs and return workers.

Europe’s tech index climbed 32% to 2021 and hit all-time highs in 2000. Capgemini soared almost 70% last year.

However, the pan European tech sub-index plunged 15% in the first quarter of this year amid inflation fears and higher rates.

Capgemini enjoyed a great year in 2021 thanks to the “acceleration of digital transformation in large organizations and companies, and investments (…) that were made in offering”, Ezzat explained.

He said, “Data and the cloud are top priorities for companies. We are well-positioned in those markets.”