• Employment and Education Services (Best Prospect 2008: U.S. Commercial Service)
• Services in Northern France (Invest in Northern France)

EDUCATIONAL SERVICES

EDUCATION ABROAD HAS INCREASINGLY BECOME AN IMPORTANT FACTOR FOR FRENCH UNIVERSITY GRADUATES SEEKING TO STAND OUT IN THE EMPLOYMENT MARKET, ESPECIALLY WITH THE EXPANSION OF THE EUROPEAN UNION. IN ADDITION, THE FACT THAT ENGLISH IS NOW EFFECTIVELY THE BUSINESS LANGUAGE OF EUROPE HAS STIMULATED GREATER INTEREST IN PURSUING ADDITIONAL STUDIES IN ENGLISH-SPEAKING COUNTRIES, INCLUDING THE UNITED STATES.
THEREFORE, EXCELLENT OPPORTUNITIES EXIST FOR U.S. SCHOOLS WISHING TO EXPAND THEIR ENROLLMENT OF FRENCH STUDENTS. A NUMBER OF UNDERGRADUATE AND GRADUATE STUDENTS PREFER TO GO ABROAD TO EXPAND THEIR UNIVERSITY AND POST-GRADUATE TRAINING AND EXPERIENCE. FOR THE ACADEMIC YEAR 2001/2002, OVER 14,000 STUDENT AND EXCHANGE VISAS WERE ISSUED IN FRANCE FOR THE UNITED STATES (7,418 OF WHICH WERE STUDENT VISAS). THESE FRENCH STUDENTS GENERATED MORE THAN USD 165 MILLION IN REVENUE AS A RESULT OF SPENDING ON TUITION AND LIVING EXPENSES. FRANCE RANKS THIRD IN EUROPE, AFTER GERMANY AND THE UNITED KINGDOM, AS A SOURCE OF STUDENTS FOR U.S. EDUCATIONAL INSTITUTIONS, AND FOURTH OVERALL IN THE WORLD BEHIND CHINA.
OPPORTUNITIES FOR U.S. SCHOOLS ARE EXPECTED TO CONTINUE GROWING DUE TO THE FAVORABLE VIEW OF THE FRENCH TOWARD STUDIES IN THE UNITED STATES. CAMPUS LIFE AND THE POSSIBILITY OF A SPECIALIZED AND FOCUSED CURRICULUM CONTRIBUTE TO THE SUCCESS OF AMERICAN EDUCATIONAL SERVICES IN FRANCE. AMERICAN EDUCATIONAL INSTITUTIONS SHOULD INCREASE THEIR EFFORTS TO PROMOTE THEIR PROGRAMS IN FRANCE.
BEST PROSPECTS WITHIN THIS SECTOR INCLUDE: INTENSIVE "AMERICAN" ENGLISH LANGUAGE TRAINING PROGRAMS (SUMMER PROGRAMS FOR STUDENTS OR ADULTS); PROGRAMS IN BUSINESS ADMINISTRATION; ONE-YEAR UNIVERSITY PROGRAMS FOR FRENCH HIGH-SCHOOL GRADUATES USUALLY BETWEEN GRADUATION FROM THE LYCEE AND ENTRY INTO A FRENCH UNIVERSITY; SECONDARY EDUCATION BOARDING SCHOOLS; WORK/STUDY PROGRAMS (INTERNSHIPS); ACADEMIC SUMMER CAMPS; AND UNDERGRADUATE AND GRADUATE DEGREES IN SUCH SUBJECTS AS ENGINEERING, MEDICINE, SCIENCES, LAW, COMMUNICATIONS, MARKETING, MANAGEMENT AND COMPUTER SCIENCES.
AUTHOR: VALERIE FERRIERE

MANAGEMENT CONSULTING SERVICES

THE MARKET FOR MANAGEMENT CONSULTING SERVICES IN FRANCE IS EXTREMELY DYNAMIC AND HAS EXPERIENCED CONSISTENT AND SIGNIFICANT GROWTH IN RECENT YEARS. VALUED AT USD 4 MILLION, THE MARKET WAS COMPOSED OF OVER 25,000 FIRMS AND EMPLOYED MORE THAN 55,000 PEOPLE. ALTHOUGH THE MARKET GREW BY MORE THAN 15 PERCENT IN 2001, A SLOWDOWN IS EXPECTED FOR 2002 WITH AN ESTIMATED 7 PERCENT MARKET GROWTH. AT THE SAME TIME, GROWTH RATES VARY ACCCORDING TO THE SIZE OF THE CONSULTING FIRMS. AS A RESULT OF FEWER MAJOR PROJECTS, SUCH AS MERGERS AND ACQUISITIONS, THE IMPLEMENTATION OF THE EURO AND THE 35-HOUR WORKWEEK, LARGE FIRMS ANTICIPATE LOWER GROWTH RATES WHILE SMALLER FIRMS (LESS DEPENDENT ON MAJOR PROJECTS) EXPECT GROWTH RATES OF 20 PERCENT FOR 2002. IN THE PAST YEAR, SMALL AND MEDIUM SIZE BUSINESSES ACCOUNTED FOR MUCH OF THE GROWTH. THE INDUSTRY, HOWEVER, SHOULD TO GROW BY 7 PERCENT IN THE FIRST QUARTER OF 2002 AND 10 PERCENT IN THE SECOND QUARTER.
SEVERAL FACTORS MAY ACCOUNT FOR THE RECENT EXPANSION OF THE MANAGEMENT CONSULTING MARKET IN FRANCE. FOR EXAMPLE, A RELATIVELY STRONG OVERALL DOMESTIC ECONOMY HAS PERMITTED FRENCH FIRMS TO DEVOTE ADDITIONAL RESOURCES TO RESPONDING EFFECTIVELY TO AN INCREASINGLY COMPETITIVE, TECHNOLOGICALLY SOPHISTICATED AND RAPIDLY GLOBALIZING MARKETPLACE. AS A RESULT, SOME OF THE MOST SUCCESSFUL MANAGEMENT CONSULTING FIRMS ARE THOSE THAT SPECIALIZE IN HELPING FIRMS REPLACE OUTDATED INTERNAL PROCESSES WITH MORE COMPETITIVE COMMUNICATION AND INFORMATION SYSTEMS. THIS OFTEN MEANS IMPLEMENTING NEW NETWORK TECHNOLOGIES, SUCH AS THE INTERNET, EXTRANET, AND INTRANET. ADDITIONALLY, WITH GLOBALIZATION OF THE ECONOMY, FRENCH COMPANIES ARE INCREASINGLY SEEKING A SINGLE SOLUTION TO BE USED IN THEIR OPERATIONS WORLDWIDE. LARGE MULTINATIONAL MANAGEMENT CONSULTING FIRMS, IN PARTICULAR, POSSESS THE EXPERTISE NECESSARY TO HELP THEM ACHIEVE THIS GOAL.
IN ADDITION, AS FRENCH CORPORATIONS ADOPT A CORPORATE GOVERNANCE MODEL, STOCKHOLDERS HAVE PLACED PRESSURE ON CORPORATE MANAGEMENT TO ATTAIN EVER-INCREASING EFFICIENCY, PRODUCTIVITY AND PROFIT MARGIN LEVELS. MANAGEMENT CONSULTING FIRMS CAN ASSIST BY FORMULATING SOLUTIONS THAT WILL BOTH MINIMIZE COSTS AND MAXIMIZE REVENUES, A PROCESS THAT WILL OFTEN REQUIRE A VAST RESTRUCTURING OF EXISTING SYSTEMS.
THE MARKET FOR CONSULTING SERVICES IN FRANCE CAN BE DIVIDED INTO SIX DIFFERENT SERVICE CATEGORIES. FIRST, THE LEADING FIRMS HAVE BEEN FOCUSING THEIR EFFORTS ON THE MORE DYNAMIC MARKET FOR CONSULTING SERVICES. THESE LARGE, MULTIDISCIPLINARY FIRMS OFFER GLOBAL SOLUTIONS TO THEIR CLIENTS IN A VARIETY OF SECTORS. ALTHOUGH THEY REMAIN DOMINANT IN THE CONSULTING MARKET, THE LEADING FIRMS HAVE RECENTLY BEEN FACING COMPETITION FROM FRENCH "SSII" (SOCIETES DE SERVICES D'INGENIERIE INFORMATIQUE) FIRMS. THIS SECOND CATEGORY OF FIRMS IS SPECIALIZED IN ENGINEERING AND INFORMATION TECHNOLOGY, AND HAS BENEFITED FROM AN INCREASED DEMAND FOR EXPERTISE IN NEW TECHNOLOGIES. THIRD, THERE ARE CONSULTING FIRMS, WHICH ARE SPECIALIZED IN ANALYZING THEIR CLIENTS' COMPETITIVE BUSINESS ENVIRONMENTS. THE THREE OTHER CATEGORIES ARE SPECIALISTS IN ORGANIZATIONAL CONSULTING, HUMAN RESOURCES CONSULTING FIRMS, AND INDIVIDUAL CONSULTANTS. DUE TO A RECENT TREND TOWARD CONCENTRATION IN THE MANAGEMENT CONSULTING MARKET, THE LINES TRADITIONALLY SEPARATING THESE SIX CATEGORIES OF SERVICES ARE BECOMING INCREASINGLY BLURRED.
FRENCH COMPANIES HAVE SUBSTANTIALLY INCREASED THEIR ACTIVITY IN EUROPE AND INTERNATIONALLY OVER THE PAST FEW YEARS. CONSEQUENTLY, A GROWING AMOUNT OF CONSULTING MISSIONS HAVE AN INTERNATIONAL FOCUS, CONFIRMING THE FACT THAT THE FRENCH MANAGEMENT CONSULTING SERVICES MARKET MAY HAVE SIGNIFICANTLY MATURED IN RECENT YEARS.
THE CONCLUSION OF MANY PROJECTS RELATING TO THE ADOPTION OF THE EURO AND THE 35-HOUR WORKWEEK HAS RESULTED IN A SMALLER DEMAND FOR SERVICES OF LARGER FIRMS.
MOST OF THE FUTURE GROWTH IN THIS INDUSTRY WILL BE ACCOUNTED FOR BY SMALL FIRMS. WHILE MEDIUM SIZE CONSULTING FIRMS ARE PREDICTED TO GROW BY 11 PERCENT IN 2002, THE MARKET FOR SMALL MANAGEMENT CONSULTING FIRMS IS EXPECTED TO BE MUCH MORE REMUNERATIVE. WITH A EXPECTED GROWTH OF 21 PERCENT IN 2002, SMALL FIRMS WILL LEAD THE INDUSTRY IN TERMS OF GROWTH, ACCORDING TO INDUSTRY ANALYSTS.
AMERICAN FIRMS REMAIN DOMINANT IN THE FRENCH MANAGEMENT CONSULTING MARKET, REPRESENTING 82 PERCENT OF THE REVENUE OF THE TOP TEN CONSULTING SERVICES PROVIDERS. HOWEVER, FRENCH FIRMS, AND ESPECIALLY THOSE IN THE DYNAMIC SSII CATEGORY, ARE QUICKLY GAINING GROUND. NONETHELESS, THE MARKET REMAINS HIGHLY CONCENTRATED, WITH THE TEN LARGEST FIRMS REPRESENTING 48 PERCENT OF THE ACTIVITY OF THE TOP ONE HUNDRED. THE FOLLOWING RECENT MERGERS OR PARTNERSHIPS CONFIRM THIS TREND. THEY INCLUDE CAP GEMINI AND ERNST YOUNG BERNARD BRUHNES CONSULTANTS AND NORSYS, AND GFI INFORMATIQUE AND SOLVING INTERNATIONAL.
THE MOST PROMINENT AMERICAN FIRMS IN THE FRENCH MARKET ARE THE BIG FIVE (PRICE WATERHOUSE COOPERS, KPMG CONSULTING, DELOITTE & TOUCHE, ACCENTURE, CAP GEMINI AND ERNST YOUNG). THIS GROUP HAS BEEN EXPERIENCING RAPID GROWTH OVER THE LAST SEVERAL YEARS. HOWEVER, THE CONSULTING SECTIONS OF THESE FIRMS HAVE BEEN RESPONSIBLE FOR MOST OF THIS GROWTH AND INCREASINGLY VIEW THEIR AUDITING AND ACCOUNTING COUNTERPARTS AS A DRAG ON THE FLEXIBILITY AND DEVELOPMENT OF THE ORGANIZATION AS A WHOLE. AS A RESULT, SOME ANALYSTS PREDICT TENSION WITHIN THE BIG FIVE, AND POSSIBLY A MOVE BY THE MORE DYNAMIC CONSULTING SECTIONS OF THESE FIRMS TO ASSERT THEIR INDEPENDENCE.
THERE WAS ALSO A TREND FOR BIG FIRMS TO JOIN FORCES --BOTH THROUGH PARTNERSHIPS AND ACQUISITIONS-- WITH THEIR COMPETITORS, PARTICULARLY IN THE SSII CATEGORY. THIS HAS ALLOWED BIG FIRMS TO GAIN THE NECESSARY EXPERTISE IN NEW TECHNOLOGIES THAT THEIR CLIENTS WERE DEMANDING. THE ACQUISITION OF KPMG PEAT MARWICK BY CSC AND THE MERGER BETWEEN CAP GEMINI AND ERNST YOUNG ILLUSTRATED THAT TREND. HOWEVER, SOME PARTNERSHIPS ARE CURRENTLY BEING REASSESSED, SUCH AS CAP GEMINI AND ERNST YOUNG WHICH HAVE SINCE ANNOUNCED THEIR INTENTION TO SPLIT THE CONSULTING AND INFORMATION TECHNOLOGY OPERATIONS.
THE GROWTH OF MEDIUM-SIZED CONSULTING FIRMS HAS BEEN RELATIVELY GOOD, EXPERIENCING 7 PERCENT GROWTH IN 2001, LARGELY AS A RESULT OF COMPETITION FROM THE LARGE FIRMS IN THE MARKET USUALLY CONTROLLED BY MEDIUM-SIZED FIRMS. AS A RESULT, ANALYSTS PREDICT A TREND TOWARD THE CONCENTRATION OF MEDIUM-SIZED FIRMS THROUGH PARTNERSHIPS, MERGERS AND ACQUISITIONS, IN AN EFFORT TO ATTAIN THE CRITICAL MASS NECESSARY TO WITHSTAND COMPETITION FROM (OR RESIST ABSORPTION BY) THE BIG FIVE, IN PARTICULAR. FOR EXAMPLE, SOFT COMPUTING RECENTLY BOUGHT THE SSII SYNETICS IN ORDER TO HAVE A PRESENCE IN THE BANKING SECTOR AND TO COMPETE WITH THE BIG FIRMS. THESE MEDIUM-SIZED FIRMS, OFTEN INCLUDING THE SSII CATEGORY, WILL NEED TO DEVELOP BOTH ECONOMIES OF SCALE AND THE BROAD, GLOBAL EXPERTISE OF LARGER CONSULTING FIRMS IN ORDER TO COMPETE EFFECTIVELY WITH THEM.
IN ADDITION, THE RECENT COLLAPSE OF ARTHUR ANDERSEN HAS ALSO ACCELERATED THE RESTRUCTURING OF THE MARKET. FOR EXAMPLE, AMYOT EXCO AND FIDULOR COMBINED TO FORM A GRANT THORNTON BRANCH IN FRANCE, A FIRM THAT, AS A RESULT, HAS BECOME THE MIDDLE MARKET LEADER.
SMALL CONSULTING FIRMS REMAIN VIRTUALLY EXCLUSIVE PROVIDERS OF CONSULTING SERVICES TO SMALL LOCAL AND REGIONAL COMPANIES. THEY HAVE NOT YET FACED ANY REAL COMPETITION FROM THEIR LARGER CONSULTING RIVALS, WHICH TEND TO BE TOO EXPENSIVE AND TO OFFER STANDARDIZED SOLUTIONS THAT ARE NOT OFTEN WELL-SUITED TO THE NEEDS OF SMALL-FIRM CLIENTS. AS A RESULT, THE MARKET FOR SMALL FIRM CONSULTING SERVICES HAS EXPANDED, WITH 19 PERCENT GROWTH IN 2001 AS COMPARED TO 2000. SMALL COMPANIES SEEM TO CONSIDER THE TRANSITION, OVER THE PAST SEVERAL YEARS TO THE EURO AND THE 35-HOUR WORKWEEK AN OPPORTUNITY TO RETHINK THEIR BASIC OPERATIONAL STRUCTURES. THE MARKET REMAINS PROMISING FOR SMALL CONSULTING FIRMS, PARTICULARLY FOR THOSE SPECIALIZED IN SECTORS SUCH AS INFORMATION TECHNOLOGY AND HUMAN RESOURCES. HOWEVER, THESE FIRMS SHOULD BE WARY OF COMPETITION FROM MEDIUM-SIZED FIRMS THAT ARE BEING DISPLACED FROM THEIR OWN MARKETPLACE BY BIG, MULTI-DISCIPLINARY CONSULTING FIRMS.
AUTHOR: ROSE-MARIE FARIA

EMPLOYMENT SERVICES

UNEMPLOYMENT CONTINUES TO BE A MAJOR CONCERN IN FRANCE. WHILE THE UNEMPLOYMENT RATE WAS DECREASING FOR THE PAST FEW YEARS, IT BEGAN INCREASING IN 2002 DUE TO THE WORLD ECONOMIC SLOWDOWN. THE RATE OF UNEMPLOYMENT IN FRANCE HAS GROWN FROM 8.7 PERCENT IN MARCH OF 2001 TO 9.1 PERCENT IN MARCH OF 2002, WITH THE TOTAL NUMBER OF JOB SEEKERS REACHING 2.4 MILLION. THE TOTAL EMPLOYMENT SERVICES MARKET IS VALUED AT APPROXIMATELY USD 18 BILLION.
FRANCE HAS THE LARGEST TEMPORARY HELP MARKET IN EUROPE. IN 2001, THE TEMPORARY EMPLOYMENT INDUSTRY REMAINED STABLE, WITH A COMPARABLE NUMBER OF JOB PLACEMENTS THAT YEAR AS IN 2000.
FRANCE CURRENTLY HAS 4,400 TEMPORARY HELP AGENCIES, AND 603,000 TEMPORARY EMPLOYEES REGISTERED, A 0.3 PERCENT DECREASE IN THE NUMBER OF SUCH EMPLOYEES COMPARED TO 2000. FRENCH TEMPORARY EMPLOYMENT MARKET TURNOVER (VAT EXCLUDED) HAS INCREASED BY APPROXIMATELY 4 PERCENT SINCE 2000 (FROM USD 18.08 BILLION IN 2000 TO USD 18.8 BILLION IN 2001).
THOSE WHO USE TEMPORARY EMPLOYMENT ARE PRIMARILY DIVIDED INTO THREE SECTORS. IN 2001, THESE WERE THE INDUSTRIAL SECTOR (315,560 TEMPORARY EMPLOYEES), SERVICES SECTORS (186,930 TEMPORARY EMPLOYEES), AND THE CONSTRUCTION SECTOR (102,510 TEMPORARY EMPLOYEES).
OVER THE LAST 10 YEARS, THE TEMPORARY EMPLOYMENT INDUSTRY HAS BECOME MORE CONCENTRATED, WITH SMALL AGENCIES CONSOLIDATING INTO LARGE, MORE POWERFUL COMPANIES. THE TEMPORARY EMPLOYMENT MARKET IS COMPOSED OF LARGE GROUPS OF COMPANIES, SUCH AS ADECCO, WHICH CONTINUE TO DOMINATE THE FRENCH MARKET. ADECCO IS FOLLOWED BY ADIA, MANPOWER (U.S), VEDIOR BIS, SYNERGIE AND RANSTAD INTERIM.
ALTHOUGH PERMANENT JOB PLACEMENTS INCREASED SIGNIFICANTLY DURING THE THIRD QUARTER OF 2000, PERMANENT JOB PLACEMENTS DECREASED SLIGHTLY IN 2001 AND DRASTICALLY IN THE FIRST QUARTER OF 2002. IN 2002, JOB PLACEMENTS WERE DOWN ALMOST 46 PERCENT COMPARED WITH THE SAME PERIOD IN 2001. THE HEAVY INDUSTRY AND SERVICES SECTORS HAVE SHOWN THE HIGHEST NUMBER OF PLACEMENTS. DECREASING SIGNIFICANTLY WERE PLACEMENTS IN GENERAL MANAGER POSITIONS IN THE BANK AND INSURANCE SECTOR, REPRESENTING ONLY 3 PERCENT OF TOTAL RECRUITMENT.
DEMAND FOR COMMERCIAL/MARKETING DIRECTOR POSITIONS HAS INCREASED, REPRESENTING 35 PERCENT OF TOTAL RECRUITMENT IN THE THIRD QUARTER OF 2001. SHOWING MUCH SMALLER GROWTH IS THE RECRUITMENT OF MANAGER POSITIONS IN HUMAN RESOURCES AND COMPUTER TECHNOLOGY.
MAJOR U.S. EXECUTIVE SEARCH COMPANIES, SUCH AS SPENCER STUART, RUSSELL REYNOLDS, AND BOYDEN EXECUTIVES SEARCH, ARE ALREADY PRESENT IN FRANCE AND HAVE EARNED A GOOD REPUTATION.
IN ADDITION, RECRUITMENT VIA THE INTERNET HAS BECOME AN EFFECTIVE TOOL FOR FRENCH FIRMS. A MAJORITY OF PROFESSIONALS IN ALL INDUSTRIES USE THE INTERNET TO RETRIEVE AND SUBMIT EMPLOYMENT APPLICATIONS.
IN 2001, OVER 40 PERCENT OF RECRUITMENT FIRMS IN FRANCE PUBLISHED JOB ANNOUNCEMENTS ON THEIR WEB SITES, COMPARED TO 43 PERCENT IN 2000.
AMERICAN FIRMS SPECIALIZING IN THIS FIELD MAY WANT TO TAKE ADVANTAGE OF THIS NEW TREND AND ENTER THE FRENCH MARKET.
AUTHOR: ROSE-MARIE FARIA

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