IT Services Companies growth in 2022, revised upwards

According to estimates by Numeum, the professional association of IT Services Companies and Consulting Firms, the digital market in France is enjoying greater growth than expected. While in December, an increase of 7.1% was estimated, we are now talking about 7.4% in 2022. For the 12th consecutive year, the digital sector is still creating jobs. And it's not going to stop...

A strong recovery in digital sector growth expected in 2022

All sectors are affected by the increase in growth:

• Publishers and cloud platforms: +11.3% for a market of €21.6 billion
• NSE: + 5% for a market of €31.9 billion
• ICT: +6.9% for a market of €7.3 billion

This recovery is explained by a strong increase in demand but also by other structural issues such as the migration of applications or projects previously interrupted by the health crisis, which have resumed earlier than expected.

Initially estimated at 56.3 billion euros, the size of the digital market is now re-evaluated at 60.8 billion euros by 2022.

Increased IT budgets seem to be driving growth. Out of 100 CIOs in May 2022, 51 CIOs announced an increase in their IT budget for 2022, up from expectations.

For IT Services Companies clients, the IT objectives remain in order of priority:

• Securing information systems: 62%.
• Improving the customer experience: 55%.
• Data analysis: 47%.
• Responsible digital: 45%.

Regarding the Cloud: 68% of CIOs surveyed use it and 15% will start using it in 2022 or 2023. There has also been an increase in SaaS compared to H2 2021 with 69% of CIOs using this model.

The digital sector is still recruiting

For the 12th consecutive year, the sector is still creating jobs. Digital employees represented a total of 572,126 people in 2021 (sources BIPE, Numeum and ACOSS data), and there were 34,000 net new salaried jobs in 2021.

From a regional perspective:

• 50.3% of employees in the digital sector were working in Paris Region in 2021.
• Jobs from the Brittany and New Aquitaine regions have increased sharply between 2020 and 2021
• Occitania accounted for 7.3% of jobs in the sector in 2021, a growth of nearly 8.7%.

Recruitment is back on track for 75% of IT Services Companies, but difficulties in filling available positions are increasing. 79% of digital companies cite a lack of talent as the main barrier to growth (source: PAC survey, Group Teknowlogy for Numeum, May 2022).

The sector continues to face a shortage of talent trained in all the skills needed to deploy the latest technological innovations and support the entire French economy in the digital transformation.

To boost the growth of IT Services Companies, 5 levers to activate

5 strong trends continue to drive the sector:

• Digital transformation (+10.2% growth in 2022 or 7.6 billion euros): such as customer experience, e-commerce, dematerialization...
• The Cloud C&SI - Consulting and Systems Integration (+24.5% growth in 2022 or 15.3 billion euros): vertical clouds, globalized collaboration, the generalization of container approaches, modernization and transformation apps / info...
• Big Data (+22.1% growth in 2022, or 2.3 billion euros): the collection and use of data to change business models, develop new services, etc.
• IoT (+19.1% growth in 2022 or €5.9 billion): the development of new solutions with 5G and edge computing...
• Security (+11.3% growth in 2021, or €3.3 billion): with growth in investments and outsourcing to counter the resurgence of risks, attacks...

"The French digital market is once again experiencing a strong growth rate this year, which is driven by the digital transformation of organizations. However, digital companies are still facing a major talent shortage. If we want to see these positive results continue, training and the attractiveness of the sectors must be a priority to counter the shortage of technical skills and meet the challenges of innovation in the sector's businesses." emphasize Godefroy de Bentzmann and Pierre-Marie Lehucher, co-chairmen of Numeum.