Results of the Covid-19 barometer of the digital sector: despite the difficulties, companies are giving themselves the means for continuity
Like the rest of the economy, the digital sector has been hard hit by the crisis, and is organizing itself to maintain its activity: companies are already organized to ensure continuity of service for the whole ecosystem, including outside the digital sector.
The majority of industry leaders envisage a recovery in business activity from the last quarter of 2020, which could extend into the 2nd quarter of 2021. From the outset, Syntec Numérique has been mobilized alongside its members, through dedicated measures for companies and participation in government discussions that have led to the implementation of support measures for start-ups as well as for all companies in the sector.
In the face of declining business, responsiveness
Among the 166 respondents, 74.1% are already anticipating a fall in their sales forecasts for the second quarter of 2020, averaging -22.9%. This very real impact is reinforced by a perceived lengthening of payment terms, which is likely to exacerbate the cash-flow difficulties of smaller players. In all, 46% of business leaders are worried about their company’s survival if the economy does not recover at a normal pace in 3 months’ time.
Faced with this situation, digital companies are getting organized to maintain their activities and enable all their customers and partners outside the digital sector to do the same, thanks to services that facilitate remote working and customer relations. Already, 98% of these companies use telecommuting, which means that almost 80% of their employees are able to continue working remotely. This continuity of service is reinforced by the use of the government’s part-time working scheme, which cushions the impact of the drop in income: 2 companies out of 3 use it, i.e. a total of around 68,000* employees on part-time working for the sector, out of the 5.8 million concerned by these measures in all sectors combined.
” It’s good news for our sector, and for the economy as a whole, to see that our companies are mobilizing and organizing despite the difficulties they face. Alongside our members, we are in constant contact with the government and administrations to help find the right solutions and work towards a way out of the crisis. Business continuity for digital companies means that we will continue to be a growth gas pedal for the rest of the economy, as we have been for several years. “says Godefroy de Bentzmann, President of Syntec Numérique.
rn
Syntec Numérique supports its ecosystem during the crisis and anticipates the recovery
Since the start of the Covid-19 episode on March 16, Syntec Numérique’s “SVP social” has seen a 35% increase in the number of visitors. This expert service answers members’ social-related questions. In this spirit of foresight, the professional organization has joined forces with Cigref to propose 6 principles of solidarity and mutual understanding for the digital ecosystem. Whether it’s a question of impacting payments or contracts between customers and suppliers, it’s essential during this period to show professional mutual aid to enable the whole economy to continue breathing.
The trade organization is also urging digital companies to use this period of crisis to train their employees.
“We’ll need all our resources if we’re to effectively revive our economy. Syntec Numérique welcomes the measures already announced by the government for businesses, which seek to respond to the central issue for the economy as a whole: safeguarding jobs despite the drop in activity. We invite companies to use this period of crisis to train employees and help them upgrade their skills to meet the needs of the future market as closely as possible. “explains Godefroy de Bentzmann.
rn
Syntec Numérique is also working on the recovery plan, in collaboration with other professional organizations. It will submit its recommendations to the government at the end of the month, and is already in regular contact with the Médiateur des Entreprises. With 1 in 2 business leaders expecting the recovery to take place over several months, between September and December 2020, this plan will need to propose short-term measures to support the recovery.
In the meantime, Syntec Numérique is promoting the cooperation at work throughout the sector via the Covid Syntec Numérique website, an online directory of solutions offered by companies of all sizes to the general public, businesses and healthcare establishments and professionals, which already lists over 400 initiatives.
* 68,000 employees as at 07/04/2020, the barometer’s closing date. It should be noted that a large number of applications for short-time working are in progress, and this figure is rising steadily.