French digital companies (software publishing, IT services, technology consulting) predict a 6.7% drop in sales in 2020 due to the Covid-19 crisis, according to a barometer published Tuesday by the professional union Syntec Digital. The software publishing sector fared the best, dropping 3.6%. “This is the sector showing the fastest signs of recovery”, notes Syntec, which notes that “ more than 8 out of 10 companies plan to resume their activity in the second half of the year ” 2020.
Software publishers who sell software that can be used on demand (SaaS) from the cloud (cloud computing) are particularly optimistic, 86% of them predicting stability or growth in their sales over the whole of 2020, despite crisis. IT service companies, for their part, expect their turnover to decline by 6.2%. But then again, the move to the cloud of enterprise computing will drive sales and return to growth more than ever, notes Syntec.
A air hole for engineers’ jobs
“The development of cloud offers is intensifying and will reach 23% of the sector’s market share in 2020” against 19.4% in 2019, according to the union. The sector most affected by the Covid-19 crisis is that of technology consulting, which largely depends on the aeronautics and automotive sectors, very affected by the crisis. Sales are expected to drop by 12.5% and Syntec is worried about the consequences of this air gap for the employment of engineers.
Syntec suggests that the government create a “Training for the Maintenance and Development of Innovation Skills” (FMDCI) course for engineers and technicians who find themselves without a workload during the crisis. It is necessary “Avoid the flight of talent abroad and keep skills in France during this period”, Syntec said.