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May 6, 1994

FRENCH SOFTWARE AND SERVICES SECTOR LOOKS FOR 6% TO 8% GROWTH THIS YEAR

By CBR Staff Writer

Eric Hayat, president of Syntec Informatique, the professional organisation for France’s software and systems engineering firms, predicts a growth this year of between 6% and 8%, reports La Tribune-Defosses. One percent growth in the national economy will translate into several percentage points of growth for our sector, he said, while cautioning that the negative results from 1993 keep him prudent. In 1993, French information services companies saw their total revenues decline 1% to about $10,500m and, for the first time, revenues from information systems services (not including software sales) declined 4%. Also for the first time, the number of employees in the sector fell, to 129,000 from 132,000. On the positive side, the article quotes Syntec member Jean-Claude Mailhan saying, We don’t sense a budgetary limitation on the part of our clients, but rather an prolongation of the decision-making period. This is due to the fact that top management is getting very involved in the choices, so as to verify the profitability of information technology investment. Syntec is awaiting with anticipation the results of the government’s information highway study, since, says Mailhan, in this area, systems engineering and services companies will have a role to play.For the third year in a row, the French electronics industry suffered a decline in 1993, according to the Federation of Electrical & Electronic Industries. In 1993, total sector revenues were down 4.6% to $48,800m and French suppliers’ share of their own market fell to 44%, from 46% in 1992.

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