The slowdown is confirmed in the IT and digital sector in France, even if the level of growth remains more than consistent compared to the rest of the French economy. Thus, Numeum estimates the increase in revenues at 6.5% in 2023.
For comparison, it reached 7.5% the previous year. The market nevertheless remains dynamic in 2023 and in line with the mid-year mid-year barometer. In June, the employers’ union expected an increase of 6.3%.
+10.3% to €24.5 billion for software
The French locomotive remains software publishing and cloud platforms. The turnover from these activities jumped another 10.3%. They largely supplant the digital services of ESNs (4.1%) and technology consulting (5.5%).
“Sustained” growth in 2023 is expected to slow further next year to 5.8%. Despite everything, there is still reason to be satisfied for companies in the sector due to the “unstable economic and geopolitical context.”
The market in France now represents 66.2 billion euros, of which 37% is provided by software publishers and cloud platforms (24.5 billion euros in turnover). The ESNs retain the lion’s share at 51%.
Numeum identifies 5 main levers to explain the good results of digital companies. This primarily concerns the Cloud and associated services (consulting and systems integration).
The cloud market climbs to 18.6 billion euros
This market represents 18.6 billion euros in 2023 with +17.5% annual growth. Up 10.2%, security remains a strategic expenditure item: 3.8 billion euros. This health is explained by the growth of investments and outsourcing to counter the increase in risks, regulations and attacks.
Data is the 3rd digital engine in France with a Big Data market valued at 3 billion euros (+18%). “The collection and use of data are becoming essential for evolving business models, developing new services and optimizing” operations, says Numeum.
Finally come artificial intelligence services (1.1 billion euros at +22.9%) and responsible digital services (0.7 billion euros at +39.3%). Numeum has also observed a sharp increase in job creations (4,684) in GreenTech.
In its latest biannual barometer, Numeum naturally does not ignore the subject of generative AI – which it invites to reconcile with that of responsible AI. Companies consider AI Gen as a source of opportunities in terms of improvement (66%) and business (48%).
Generative AI is included in offers and solutions
“Only 14% of companies in the sector consider it a strong threat to employment,” specifies the organization. For its members, generative AI, like SaaS, constitutes a vector of transformation.
“73% of publishers and platforms say they have already implemented or plan to use generative AI for their offers and solutions.” But what about the energy consumption of these models?
Does the adoption of generative AI not call into question investments in favor of responsible digital technology? Nearly 8 out of 10 digital companies (78%) have committed to a responsible digital approach. Among them, 63% have already implemented actions and 13% will have implemented them before the end of 2023.
On employment, obstacles persist for the employers’ organization, which shows “exacerbated tensions” on recruitment due to a “shortage of talent.” In 2023, net creations will be lower than a year before (47,000).
Insourcing complicates recruitment
“The indicators still show positive dynamics in jobs and recruitment (…) 85% of companies have stable or increasing recruitment in 2023.” Employers place emphasis on young graduates and work-study students.
However, “a new trend is emerging with 1 in 2 companies recruiting more senior or experienced profiles.” Publishers and consulting players must also deal with increased competition.
“The sector is facing a very strong wave of internalization of expertise in client companies, which is leading to significant competition in the job market and pressure on salaries. This phenomenon adds to the severe lack of people trained in digital technology.”