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Research and Innovation

ESN and ICT growth at a 5-year high

16 Sep 2022
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Record growth, proof of the dynamism of the ESN and ICT sectors

With sales set to grow by 12% in 2021, ESNs and ICTs have exceeded expectations, achieving a record growth rate not seen since the creation of the Grand Angle ESNet ICT study. Although growth rates differ according to company size – 10% for large corporations, 14% for ETIs, 27% for SMEs and 69% for VSEs – they are mainly driven by the development of their offerings (49%) and the implementation of recruitment plans (29%). As a result, 95% of companies are confident or very confident in their 3-year growth targets, which have been raised by more than 5 points compared to our previous survey.

Cloud remains the most buoyant service (30%), ahead of digital transformation consulting (17%) and cybersecurity (15%). A similar ranking to 2020, where cloud continues to widen the gap.

Results for the first half of 2022 already confirm our growth momentum and anticipated outlook.

Talent management at the heart of growth strategy

At a time when companies are facing a shortage of talent, particularly in the tech sector, recruiting and retaining employees is a key concern in order to support the digital transformation of the French economy. This race for talent does not spare ESN and ICT.

Against this backdrop, recruitment targets for 2022 have risen sharply compared to 2021: +24% for Large Enterprises compared to 2021, +34% for ETIs, +45% for SMEs and +106% for VSEs. The 3-year recruitment outlook (2022-2024) even reflects a clear acceleration in the sector’s ambitions, with +64% for Large Enterprises, +111% for ETIs, +135% for SMEs and +340% for VSEs.

While 89% of companies are confident in their ability to meet their 3-year recruitment targets, they are making substantial investments in training and talent retention: 4.2% of total payroll will be devoted to training in 2022, and 49% of companies are counting on salary increases to retain their employees. Furthermore, 19% of companies are turning to differentiating initiatives (number of teleworking days, fringe benefits, flex office, etc.) in line with employees’ new expectations.

With an average starting salary of 35656 euros, women outnumber men, accounting for 34% of new hires in the ESN and ICT sectors, up 4% on 2020. The entire wage bill will benefit from the sector’s growth, with a 5% increase in salaries in 2021.

ESG criteria, a priority issue for ESN and ICT companies

ESG (environmental, social and governance) issues are becoming a key factor in attracting and retaining talent. These issues are well identified within ESNs and ICTs, 54% of which have defined a raison d’être, including 89% of large corporations, and 90% of which have designated a person responsible for ESG within their organization. In addition, 62% of players have set up a carbon footprint tracking system.

Significantly, the main benefits of a proactive CSR approach include a unifying corporate project (20%) and attracting and retaining talent (16%).

Over the next three years, digital players have set themselves strong targets for reducing their carbon footprint, with an average reduction of 18% for large companies and 33% for SMEs and VSEs.

Innovation at the heart of ESN and ICT DNA

Innovation remains a cornerstone for ESNs and ICTs, which continue to invest heavily. As proof, companies have invested an average of 7% of their sales in internal R&D and innovation in 2021.

These forward-looking investments concern five priority technological fields and methodologies: digital transformation consulting (20%), cloud (14%), cybersecurity (14%), artificial intelligence (13%) and DevOps (8%, down 7 points on the previous year). 73% of companies in the sector give priority to product or solution innovation, and 27% to process and organizational innovation.

This dynamism is the result of the mobilization of an entire ecosystem: 50% of ESNs and ICTs say they call on external players to carry out innovation projects, a figure up 6% on 2021. These include: Universities, Chairs or higher education establishments and public laboratories (55%), their customers (41%), Technology Institutes, Research Centers, Private Laboratories and Competitive Clusters (36%), their suppliers (36%), Start-ups and Scale-ups (32%) and freelance researchers (32%).

The 5 winners of the ESN & ICT 2022 Awards

  • Growth Strategy Trophy (ETI/GE category) awarded to Astek
  • Econocom wins CSR / ESG award
  • Talent Management Trophy awarded to Clever Age
  • Innovation Trophy awarded to Business at Work
  • Special Jury Award to Sii

Hubert Giraud

Numeum

Director and Chairman of Collège ESN et ICT

” This 5th edition of the Grand Angle study highlights how ESNs and ICTs have risen to the challenges facing them, surpassing all predictions to achieve record growth. Driven by their ambition to innovate and conquer high value-added markets, they are key players in the digital and sustainable transformation of the French economy. Now more than ever, to sustain this virtuous dynamic, the ability to attract and retain the best talent is a key issue requiring a strong, long-term commitment from the entire ecosystem.  ” 

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Xavier Niffle

KPMG France

Digital Audit & Innovation Manager

“There’s just one word to describe the current state of mind among ESN and ICT managers in France: CONFIDENCE. Confidence in a market that has returned to pre-crisis levels. Confidence in the future, with three-year growth targets more than 5 points higher than in our previous survey. And confidence in their ability to achieve their recruitment plans. Because the ecosystem has some serious assets to offer. In a highly competitive talent market, CSR commitments and a differentiated HR strategy are enabling companies in the sector to ride a high wave of growth and look to the future with confidence”. 

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