2022 analysis and 2023 vision for the digital sector
Numeum, the professional organization of the digital ecosystem in France, reveals the results of its second semi-annual conference of the year. While last July, growth in the digital sector for the current year was announced at +7.4%, the estimates have been slightly revised upwards: it is +7.5% growth expected in 2022 , and +5.9% for 2023.
Outlook confirms the sector’s positive momentum
In an unstable economic and geopolitical context, the digital sector is struggling in 2022. For the sector as a whole, Numeum slightly reassessed its initial growth forecast to +7.5% for the year 2022. Everyone benefits of business to increased turnover:
• Estimated growth in 2022 for publishers and cloud platforms: +11.3%
• Estimated growth in 2022 for Digital Services Companies (ESN): +5.1%.
• Estimated growth in 2022 for Engineering and Technology Consulting (ICT) activities: +7.4%
The growth of the digital sector is largely driven by the cloud (+24.5%) and its implementation in many companies. Growth is also supported by its traditional levers: Big data, IoT services and digital transformation. Finally, investments in cybersecurity increased by 11.3% to reach 3.3 billion euros due to the resurgence of cyberattacks in recent years.
The size of the digital market is estimated at 60.9 billion euros in 2022: 35.5% of the market for software publishers and cloud platforms with 21.6 billion euros in turnover, 52, 4% of the market for ESN with 31.9 billion euros and in finally 12.1% for Engineering and Technology Consulting activities with 7.4 billion euros.
The increase in companies’ IT budgets seems to fuel growth in 2022. According to the survey conducted by PAC, for Numeum among 100 CIOs, 48% of CIOs declared an increased IT budget for 2022, a an increase of 10% compared to 2021.
For business clients of digital players, the main IT goals are, in order of priority: information system security (very important for 62% of CIOs), data analysis (49%) and improvement of customer experience (43%). There has also been a strong increase in the importance CIOs place on teleworking (implementation, tools, etc.) and agile development. Consideration of CSR issues is a criterion required almost systematically in calls for tenders to suppliers (source: PAC survey, for Numeum)
A sector that is recruiting but faces a talent shortage
For the 12th year in a row, the digital sector is creating jobs. The digital workforce represents a total of 572,126 people in 2021 (source of BIPE, Numeum and ACOSS data), and there is 34,000 net creation of paid jobs in 2021. A dynamism that seems to continue: recruitment increases by 66% and stable to 24% in the second half of 2022.
However, companies face a talent war. The problem is not new but is intensifying, thus becoming a brake on growth. The sector faces a lack of talent trained in all the skills needed to deploy the latest innovative technologies and support the entire French economy in digital transformation.
According to APEC, companies in the private sector are mainly looking for executives in IT development professions (4 job offers out of 10). Industrial and technical professions in IT and those in big data show the strongest growth in terms of job offers in the first half of 2022 compared to the first half of 2021.
Although the question of compensation is the first reason for leaving, digital companies rely on several levers to try to keep their talents: hybrid work, training, career development, plans to incentive or even retraining in the most promising and innovative subjects.
5 key growth levers to continue strengthening French digital
As established last semester, 5 strong trends continue to power the digital sector:
• Digital transformation (a market of 7.6 billion euros with +10.2% growth in 2022): such as customer experience, e-commerce, dematerialization, etc.
• Cloud C&SI – Consulting and system integration (a market of 15.3 billion euros with +24.5% growth in 2022): vertical clouds, globalized collaboration, generalization of the container approach, modernization and transformation apps/infra…
• Big Data (a market of 2.3 billion euros with +22.1% growth in 2022): the collection and use of data to develop business models, develop new services, etc.
• The IoT (a market of 5.9 billion euros with +19.1% growth in 2022): the development of new 5G solutions and edge computing…
• Security (a market of 3.3 billion euros with +11.3% growth in 2021): with growth in investments and outsourcing to combat the resurgence of risks, attacks, etc.
For 15 years, the digital market has experienced a good development trajectory and is again experiencing strong momentum this year, fueled by the digital transformation of organizations. However, digital companies are facing a major talent shortage. Training must remain one of the priorities for the year 2023 to continue to focus on the development of skills and prepare for the future,” underline Godefroy de Bentzmann and Pierre-Marie Lehucher, co-presidents of Numeum.
Responsible digital on the front line
Responsible digital is a lever of choice for reconciling the environment and digital transitions. According to the survey conducted by PAC, for Numeum between September 28 and November 14, almost 80% of digital companies are implementing specific measures to limit their energy consumption this winter. More than half of these companies have decided to anchor their actions deeper and more sustainably by training their employees on climate issues and energy sustainability.
Among the new challenges in the sector, CSR is a topic that players have responded to very quickly. The survey revealed that 93% of CIOs conduct calls for tenders with an obligation to demonstrate responsible actions for their suppliers (compared to 66% in 2020) At the same time, 76% of digital companies respond to at least one call for tenders with CSR criteria.
More and more Responsible Digital projects for CIOs in 2023: information system directors take environmental issues related to their own activity: 28% of them have IT projects that support the challenge of their company’s CSR “business” and 57% will have it by 2023.
Finally, according to the employment barometer of startups in France conducted by Motherbase, we see a good dynamic in recruitment in greentech and HRtech among French start-ups: 4,335 jobs were created in these two sectors in January to November 2022. This dynamic of job creation is greater than other sectors.
Since there will be no digital transition without an ecological transition, the sector has a dual responsibility: to start a responsible path based on consideration of the societal and environmental impact of the sector and to highlight the potential of digital in the service of a more inclusive, more ethical and more ecological society. Understanding these issues is an important condition for guaranteeing our country a digital transition with a positive impact,” commented Véronique Torner, Vice-President in charge of Responsible Digital at Numeum.
Numeum is the professional organization of the digital ecosystem in France. It represents digital service companies (ESN), software publishers, platforms and Engineering and Technology Consulting (ICT) companies. Numeum brings together more than 2,300 member companies that account for 85% of the sector’s total turnover. Led by Godefroy de Bentzmann and Pierre-Marie Lehucher, Numeum wants to put digital technology at the service of people with two main ambitions: to support the country in general and democratization of digital training; act in the service of responsible digital technology for businesses, society, people and planet. Numeum’s commitment is based on 4 pillars of action: the promotion and defense of the interests of its members and their businesses, the embodiment of digital France in Europe, the animation of the digital ecosystem to promote synergies and innovation, and strengthening service to all digital companies.
Numeum is a member of the Syntec federation. The digital sector represents more than €60.8 billion in turnover and 572,126 employees in France.
For more information: www.numeum.fr