Recruitment, the main obstacle to strong growth among software publishers

On October 8, 2019, Syntec Numérique and EY presented the results of the ninth edition of the Top 250 French software publishers. An opportunity to see that the sector remains extremely dynamic and innovative in France, and to revisit the chronic recruitment difficulties that are slowing its growth.

The dynamism of the software publisher ecosystem in France is clearly progressing, with revenue growth of 18% if we exclude the contribution of the Top 10, which includes Dassault Systèmes and Critéo. Better still, this growth is largely profitable (78% of the companies in the panel posted a positive result for the 2018 financial year) and the vast majority (91%) self-finance their growth.

Accelerated rise of SaaS

The facts : unsurprisingly, we see that the share of revenue generated in SaaS reached 37% in 2018 versus 27% in 2016. This major trend is accelerating since Cloud/SaaS is the technological priority for 49% of publishers, even ahead of artificial intelligence, more often artificial than intelligent, moreover. Subscriptions are becoming the norm, with 80% of publishers positioning them as the preferred contractual model.

Software publishers, stop losing customers subscribed to your solutions, learn the acquisition and nurturing techniques that work with marketing automation.

My analysis : this rise of SaaS emphasizes the importance of analyzing how customers use software in order to control the attrition rate, or churn. Marketing automation for publishers is becoming a competitive advantage. By knowing the uses and interests of prospects and customers perfectly, you can target your communication perfectly. Choose the right solution from a truly GDPR-compatible publisher, i.e. one not subject to the American Cloud Act.

Software publisher, a profession under HR strain

The facts : Software publishers continue to record strong workforce growth over the 2016-2018 period, with 12,700 net jobs created in two years (+16%). Recruitment difficulties remain a brake on growth for 74% of publishers. The study unfortunately confirms the low percentage – 30% – of women working in the sector.  French publishers struggle to recruit …

This finding, made for many years, continues and is accelerating since 87% of software publishers say they face recruitment difficulties, an increase of 3 points compared with 2017. The entire profession is now suffering from a talent shortage, and this is true for almost all types of profiles! These difficulties are a brake on development for 75% of software publishers.

Stop missing your recruitment opportunities, anticipate them  with inbound recruiting techniques and increase your HR efficiency by +30%. 

My analysis : Here again, marketing automation, or rather should we call it inbound recruiting, can play a decisive competitive role by transposing acquisition and nurturing techniques to targeted candidate profiles. Upstream, among people currently in jobs, as part of “employer brand” type communication.

During the recruitment process by smoothing the candidate journey. Downstream, by following up with profiles not selected for a position but of sufficient quality for a future role, and also by taking advantage of employees leaving on a positive note to turn them into ambassadors.

The underused indirect channel

The facts : 63% of French software publishers consider the direct distribution channel to be the preferred solution for developing their business. Meanwhile, the indirect lever is increasingly used by smaller, more agile publishers experiencing strong growth.

My analysis : the use of co-marketing practices between publishers or with value-added resellers (VARs) allows you to acquire new targets and qualify your existing database. You address new topics through articles, webinars, videos, and/or events, all of which are rich content that you place at the center of your marketing automation campaigns. You demonstrate your value to your partners, you become indispensable in your sector.

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