Covid-19: digital activity down 4.6% in 2020, Syntec forecasts

by bold-lichterman

The professional organization of digital players Syntec Numérique forecasts a 4.6% decline in the turnover of its members over the whole of 2020, before a rebound of 1% in 2021, according to the figures they have released Thursday. The digital Syntec brings together IT service companies (ESN), engineering and technology consulting companies and a large part of French software publishers. The forecast is a little less pessimistic than that made last June, which predicted a 6.7% drop in turnover for companies in the sector in 2020.

The Covid-19 crisis has broken a strong growth dynamic in the sector for several years, with growth rates above 4% in 2018 and 2019. In 2021, the organization forecasts a growth of 1%, but this rebound “Remains limited and conditioned by the evolution of the health crisis and the economic situation of customers”. The situation is for the moment contrasted according to the various actors of the sector.

Risks for engineering and technology consulting

Software publishers are doing better and should experience growth of 0.3% ” in 2020, according to Syntec Digital. “ESNs (digital services companies) will post a 4.2% drop in turnover”, and technology consulting activities, the most affected by the crisis, will decline by 12.3% “Because of their exposure to the aeronautics and automotive sectors hard hit by the Covid-19 crisis”.

Regarding employment (the sector currently represents more than 530,000 jobs), “Two out of three companies” in the “Digital say they have stabilized or increased their workforce in 2020”, according to Syntec Digital. ” It is in engineering and technology consulting that the risk of job losses is greatest, with more than 10,000 positions at risk ” in companies closely linked to aeronautics and the automobile, indicates the organization.