Content of the study:
The IT outsourcing market - France

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MARKET OVERVIEW

1.1 Definition and scope of the study

Outsourcing refers to the outsourcing of information systems management. It involves entrusting an external service provider with the management, operation, security and maintenance of your IT assets.

The IT sector covers three branches: software publishing, technology consulting and IT services.

The IT services branch itself comprises three categories: consulting services (outside expertise relating to the improvement of information systems), systemsengineering and integragration (design and development of information systems) andoutsourcing (management of information systems).

Outsourcing covers a wide range of services , the nature and scope of which can vary from one service provider to another.

However, it is possible to identify the main types of outsourcing:

  • Application
  • Operational
  • Global
  • Partial

In addition, outsourcing is often equated with managed services, whereas historically, outsourcing has been based on a reactive, curative approach.reactive approach (the outsourcer does not anticipate problems, but manages those already present), while managed servicesmanaged services, on the other hand, take a proactive approach (the managed services provider identifies anomalies before they create problems, and supports the customer in developing its IT system).

In this study, we will consider outsourcing as IT outsourcing in the broadest sense, comprising two segments: managed services and as-a-service.

In 2022, in France, the annual value of digital service companies (outsourcing, cloud, IT, etc.) increased by 15.5% compared to 2021. While the outsourcing market has been growing strongly for several years, and can therefore be described as structural, it is changing both nationally and globally. Indeed, managed services are experiencing a negative dynamic, in favor of services-as-a-service, whose growth is likely to be further reinforced as a result of the coronavirus crisis.

In 2008, the emergence of new technologies, in particular remote servers (Cloud), initiated a transformation of the outsourcing market. In addition to the option of using a service provider to manage information systems (managed services), there is now the possibility of using a service provider who remotely manages information systems and delivers them to the customer via an Internet connection (as-a-service).

Managed services providers can carry out the tasks entrusted to them either on their own premises, if the customer's system is hosted there, or via a link enabling remote intervention, or on the customer's premises.

Originally, outsourcing was motivated by a desire to reduce costs. Nowadays, the aim is to improve IT systems to optimize performance and focus on core business.

By 2020, over 67% of companies had opted for outsourcing to simplify their network and IT management. This trend was confirmed in 2021, with 70% of companies announcing that they wished to make greater use of outsourcing services[Infologo, ITStack]

1.2 A fast-growing global market

The global outsourcing market can be measured by ACV (***), which refers to the value of outsourcing contracts for the management of information systems. In ****, all outsourcing contracts worldwide were worth ***.* billion US dollars, and the market was estimated at *** million US dollars in ****.

Indeed, the global outsourcing market is characterized by ...

1.3 A French market in line with global growth

The outsourcing market is in very good health. All software management, cloud, digital consulting engineering and digital services industries will see their sales grow in ****. The market is estimated to have reached record sales of **.* million euros in ****. The sector enjoyed growth of *.*% in ****, which should continue in **** with an estimated ...

DEMAND ANALYSIS

2.1 Demand trends and drivers

The primary factor driving demand for outsourcing is digitalization and digital transformation. IBM shows the effects of digital transformation according to IT decision-makers from a panel of *** companies. Digital transformation is leading to a growing need for high-performance IT systems, modernization of existing systems and enhanced security, all of which are ...

2.2 Customer profile

For a long time, the clientele of outsourcing providers consisted mainly of large companies. Today, however, the benefits of outsourcing are considered to apply to small, medium-sized and even very small businesses. Indeed, outsourcing is well suited to smaller companies, as technological advances now make it possible to improve their information ...

2.3 The effect of the Covid-19 crisis

The coronavirus epidemic has accelerated an already existing trend, namely the development of the service-as-a-service model to the detriment of managed services. The restrictive measures and confinement in France have in fact reinforced the decline of managed services in favor of service-as-a-service, whose growth has particularly accelerated.

The epidemic has slowed ...

MARKET STRUCTURE

3.1 Market organization

The definition of outsourcing has evolved in step with innovation and the emergence of new technologies. Indeed, multiple concepts have emerged, and the vocabulary has become increasingly complex. However, it is possible to identify two forms of outsourcing. Managed services, as the outsourcing of information services management, can be broken down ...

3.2 ESN, the giants of the sector

The traditional ESN model

ESNs (***), are the main players in the outsourcing market, and generally offer IT services that go beyond outsourcing alone.

In ****, ESNs in France reported *% growth in sales, compared with ****. The year **** also saw growth of *.*% compared to ****, so the sector seems to be enjoying solid growth since ...

3.3 The rise of the service model

ESNs are particularly likely to offer an "As a service" model. The "As a service" model offers services in return for subscriptions, rather than buying the product directly. The advantages for the customer are numerous: constant product performance, the possibility of unsubscribing at any time... For the company, this system offers ...

OFFER ANALYSIS

4.1 Types of outsourcing services

Global outsourcing

Global outsourcing involves outsourcing management of the entire information system.

Partial outsourcing

Partial outsourcing involves outsourcing the management of a part of the information system. There are several categories of partial outsourcing.

Application Management (***): concerns the development, maintenance, operation and upgradability of a company's software assets. Operations outsourcing: covers ...

4.2 Prices

Prices for outsourcing services can vary according to a number of criteria, the main ones being: the scope of intervention (***).

However, it is possible to give a rough idea of prices.

Outsourcing companies offer monthly, hourly or flat-rate prices. Monthly fees start at €** per workstation, and €** per server for simple maintenance. ...

4.3 Innovation: a major challenge for our offering

NSEs rely on innovation to enhance and differentiate their offering. There has been a significant increase in the use of innovation in the marketplace to enhance a company's value. As the NSE market is under construction, it is particularly conducive to innovation.

Young ESN and outsourcing companies and start-ups with innovative ...

4.4 A trend from outsourcing to CSR

As in many other sectors, ESN and outsourcing are faced with the issue of technology pollution. While the metaphor of the cloud is often used to mean that these technologies do not require physical supports for the user, in practice they do require physical supports for the vendor, and greedy servers ...

REGULATIONS

5.1 Regulations

The outsourcing contract The outsourcing contract is an SLA (***) between the outsourcer and the customer, defining the quality of service to be provided by the service provider. The contract includes both basic and specific clauses. The standard clauses include Identity of service provider and customer Conditions of duration, renewal and termination Insurance Terms ...

POSITIONING THE PLAYERS

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The robotics market - France

Publicado en 01/08/2022 by Clement Girard

It covers the market and cites very interesting sources The study is well up to date with the information that can be found It is a precious time saver

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