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France Information Technology Report Q2 2011

France Information Technology Report Q2 2011

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Additional Information

Price	$530.00
Publisher	Business Monitor International
Date of Report	Apr 8, 2011

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Quick Overview

Market Overview The French IT market is the third largest in Europe and, despite current fiscal retrenchment, is projected to grow at a compound annual growth rate (CAGR) of 4% over 2011-2015. The addressable French market for IT products and services is projected by BMI to reach US$53.5bn by 2015.
The IT market showed overall signs of stabilisation in 2010, with new IT services deals in sectors such as energy, telecoms and banking, and a pick-up in outsourcing deals in Q410. Despite the tightening of government purse strings, government agencies such as the Social and Health Ministry also commissioned projects. However, the French PC market recovery weakened in the second half of 2010, thanks to soft consumer sales.
In our core IT forecast scenario, IT market growth will be around 4% in 2011. Vendors will look to key segments such as telecoms, banking and energy where most opportunities are likely to be generated. Key drivers will include growing mobile and fixed broadband penetration, product innovation such as tablets, technology innovation such as GSP technology and services, and economic recovery.
Competitive Landscape
In December 2010, French entertainment provider Cirque du Soleil implemented a cloud-based messaging and collaboration solution, reflecting a growing interest in cloud computing from French organisations. The solution, implemented by Orange Business Services, delivers Microsoft Exchange Online to Cirque du Soleil's thousands of employees worldwide.
In November 2010, French retail leader Carrefour announced plans to launch the iPad in around 70 of its domestic stores by the end of 2010. The device was launched in 15 stores in November, making Carrefour the first French hypermarket to stock the iPad.
Traditional telecoms service providers are moving into the IT services space, a trend well established in the global IT market in 2010. In August 2010, Orange Business Services announced it had acquired leading French IT integrator Alsy for an undisclosed amount. Orange hopes the acquisition will help it take a dominant position on the French market for Microsoft solutions integration as it competes with companies such as Atos Origin and Capgemini.
Computer Sales
According to BMI figures, France's addressable computer hardware market will be worth around US$10.2bn in 2011, up by an estimated 6% from US$9.7bn in 2010. Total PC revenues including notebooks and desktops are estimated at US$7.9bn and are expected to rise to US$9.2bn by 2015 at a CAGR of 4%.
In 2011 the French computer hardware market is expected to record single-digit growth, consolidating a recovery in shipments in 2010. Overall shipments were estimated to have grown by nearly 10% in 2010. One additional driver both of increased notebook sales and lower prices is the move of telecoms operators into the PC retail space.
Software
In 2011, French software sales are projected by BMI at US$13.8bn and, despite the uncertain economic conditions, revenues are forecast to rise to US$16.0bn in 2015. Software CAGR for 2011-2015 should be about 4%. Migrations to Microsoft's Windows 7 operating system, and growing interest in cloud computing services, should be among areas of opportunity in 2011.
The French market remains focused on traditional embedded software rather than software-as-a-service. However, French internet service providers (ISPs) continue to roll out hosted software offerings and double-digit growth is expected in this area.
Services French IT services spending is forecast to reach around US$22.2bn in 2011, up from US$21.1bn in 2010. Demand for IT services stabilised in 2010 after the economic crisis had an impact in 2009 when projects were put on hold. Sectoral CAGR is projected at 3% over the forecast period, as the market approaches US$25.7bn by 2015.
BMI estimates the addressable IT services market will grow by around 5% in 2011. IT services account for around 48% of total French IT spending. in 2010 the booked projects of major market players such as Atos Origin and Capgemini were healthy, indicating the market had started to recover.
E-Readiness
Thanks to the extensive reach of traditional copper plant and cable TV networks, fixed-line infrastructure is widely available in France, even in rural areas. This means operators are finding it relatively easy and cost-effective to deliver broadband services to a large number of customers (although rural parts are still being neglected). In addition, France has a high GDP per capita, which bodes well for ensuring robust spending among subscribers.
France has just three mobile network operators and is one of the least competitive mobile markets in the region. This has resulted in significantly higher and more stable average revenue per user (ARPU) rates and mobile penetration that is still below 100%, providing better subscriber growth opportunities.

Table of Contents

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 7
France IT Sector SWOT ........................................................................................................................................................................................ 7
France Political SWOT ......................................................................................................................................................................................... 8
France Economic SWOT....................................................................................................................................................................................... 8
France Business Environment SWOT ................................................................................................................................................................... 9
IT Business Environment Ratings ................................................................................................................ 10
Europe ................................................................................................................................................................................................................ 10
Table: Regional IT Business Environment Ratings ............................................................................................................................................. 13
Europe IT Markets Overview ......................................................................................................................... 14
France Market Overview ............................................................................................................................... 20
Government Authority ......................................................................................................................................................................................... 20
Background ......................................................................................................................................................................................................... 20
Hardware ............................................................................................................................................................................................................ 21
Software .............................................................................................................................................................................................................. 24
Services ............................................................................................................................................................................................................... 27
Industry Developments ....................................................................................................................................................................................... 29
Industry Forecast Scenario ........................................................................................................................... 30
2011 Outlook ...................................................................................................................................................................................................... 30
Drivers ................................................................................................................................................................................................................ 31
Segments ............................................................................................................................................................................................................. 32
Summary ............................................................................................................................................................................................................. 32
Table: France IT Sector (US$mn Unless Otherwise Stated) ............................................................................................................................... 33
Internet ............................................................................................................................................................................................................... 34
Table: Telecoms Sector -- Internet -- Historical Data And Forecasts .................................................................................................................. 34
Macroeconomic Forecast ................................................................................................................................................................................... 36
Table: France - Economic Activity, 2008-2015 .................................................................................................................................................. 37
Competitive Landscape ................................................................................................................................ 38
Hardware ............................................................................................................................................................................................................ 38
Software .............................................................................................................................................................................................................. 40
IT Services .......................................................................................................................................................................................................... 43
Company Profiles .......................................................................................................................................... 46
Atos Origin ......................................................................................................................................................................................................... 46
Capgemini........................................................................................................................................................................................................... 49
BMI Methodology .......................................................................................................................................... 50
How We Generate Our Industry Forecasts ......................................................................................................................................................... 50
IT Industry .......................................................................................................................................................................................................... 50
IT Ratings – Methodology ................................................................................................................................................................................... 51
Table: IT Business Environment Indicators ........................................................................................................................................................ 52
Weighting ............................................................................................................................................................................................................ 53
Table: Weighting Of Components ....................................................................................................................................................................... 53
Sources ............................................................................................................................................................................................................... 53