Kick-off Meeting“New Employment, New E-quality -Promoting Industrial Relations and Social Dialogue in the IT Sector” 20 March 2004Thessaloniki: Kick-off Meeting “New Employment, New E-quality - Promoting Industrial Relations and Social Dialogue in the IT Sector” 20 March 2004 Thessaloniki Definition and Structure of the Greek IT Sector SEPVE-Association of Information Technology Companies of Northern Greece


SEPVE’s role in the IT sector: SEPVE’s role in the IT sector SEPVE was established in April of 1994 The Association numbers more than 210 members It is the leading association in the Information Technology sector in the region and the official representative body of Information Technology companies that are located in the geographical regions of Northern Greece It plays an active role in the implementation of the goals of the Information Society


Slide3: To keep its current and also the prospective members informed about the recent changes in the information society business world. To contribute to the development of Information Technology in the region of Northern Greece To promote the improvement of the Information Technology companies To engage in any activity that will upgrade the role of Information Technology, will provide innovative technological solutions, and will expand the positive effects of the Information Society. The Objectives of SEPVE 1/2


The Objectives of SEPVE 2/2: The Objectives of SEPVE 2/2 To co-ordinate and submit specific business plans and proposals To organize co-operations with the various government authorities concerning the good development of members’ growth To continuously develop the managerial and technical skills of its members by organizing training seminars, workshops and forums To promote collaborations with other Balkan countries taking advantage of the geographical position of Northern Greece which is the crossroad between Mediterranean and Middle East and the Balkan countries.


IT Sector Description: IT Sector Description Definition: IT = ICT The information and communication technology sector encompasses many very different activities and companies For manufacturing industries, for inclusion in the ICT sector, the products of an industry must be intended to fulfil the function of information processing and communication, including transmission and display, and they must use electronic processing to detect, measure and/or record physical phenomena or to control a physical process For service industries, the products of an industry must be intended to enable the function of information processing and communication by electronic means (Definition agreed by OECD in 1998)


Company activities in the Greek IT sector : Company activities in the Greek IT sector Software Hardware System Integration & IT Services Internet Business Solutions – e-Commerce Web Applications & On Line Databases Telecommunications Multimedia Application Education IT Consulting


Sector Profile : Sector Profile Major Basic activities Software (Operational applications and Internet applications): 32% IT Services: 31% Distribution of office machines and PCs: 16% Trading telecommunication products and equipment: 8% Source: IOBE - Ίδρυμα Οικονομικών και Βιομηχανικών Ερευνών


Size of the ICT Sector in Greece: Size of the ICT Sector in Greece 250 : 9% 100 : 4,6% Employees Turn Over Majority of IT companies are SMEs. Major global IT companies have offices or regional headquarters in Greece: Microsoft, HP, Oracle, SAP, Motorola, Siemens, and IBM


ICT market size: ICT market size 6% increase for 2003 – MEUR 2228 Forecasted 2,5% increase for 2004 Mostly damaged were software and IT services Steadily good performance of PC systems sales Bigger market shares are shifting to multinationals Source: Strategic International/ Kataras (January 2004)


Slide10: The Greek IT market, 1999 – 2003 (Values in M€)


The IT market in Greece and W. Europe, 2002 – 2005 (% Growth Rates) : The IT market in Greece and W. Europe, 2002 – 2005 (% Growth Rates)


Reasons for the slowdown: Reasons for the slowdown Uneven economic progress: Only a small number of big companies take advantage of 3rd CSF and Olympic Games projects Lack of modernisation Over-loaning of SMEs Etc.


Characteristics of the Greek IT market: Greek government has put a strong emphasis on the development of the IS Implementation of OPIS (Operational Programme for the Information Society)is critical for the status of ICT market Access to considerable EU technology, research and development funds Good performance of R&D sector Strong scientific support from international universities and research institutes Country lacks spin-off companies from research PC and Internet usage grow Usage of new technology still on introductory level Deregulation of telecom market Characteristics of the Greek IT market


Basic sectors of IS development: Basic sectors of IS development Education Culture/ Digital content (Digitalisation of cultural and historic assets) E-government Agriculture Defense services relating to civilians (meteorology, drafting, military hospitals) E-justice E-Health Intelligent transport SMEs and digital economy Research in ICT E-skills Eurozone infrastructure and services


Employment in IT sector: Employment in IT sector In 2001 employment in the ICT sector constituted 1.1% of total workforce Well –trained highly skilled IT specialists Well-trained engineers with postgraduate studies studies in engineering (and management and economics), foreign languages and computer applications Many well-respected scholars and scientists have shown strong interest in advanced ICT research (about 1,500 scientists staff the four main IT R&D centres in Greece)


Specialisation of work force: Specialisation of work force Specialisations offered by educational institutions: IT applications specialist; IT applications with multimedia specialist; Medical IT applications technician; Computer, communication and network technician; IT, networks & office automation application technician; Systems administration and intranet-internet service technician; Computer Systems technician; Computer networks technician; Internet technology technician Telematics technician (communciations) There is no standardised job profile description in Greece


Differences in Europe: Differences in Europe 2001


Slide18: Lack of ICT professionals in the EU 2003: 1.300.000 Free job opportunities 2004: 1.600.000 Free job opportunities in Greece: Information Society - until 2006 40.000 Free job opportunities In the IT sector – Government & Private


Trends in IT Employment: Trends in IT Employment The large majority of enterprises of the sector forecast a smaller or bigger increase of employment within 2004 for the following reasons: Supply: Increasing investments in new sectors, new activities, Maturation, consolidation, better technical know-how Progressive access to new geographic markets Demand: Public sector: concretisation of big works of the IS Private sector: Important investments for software changes, import of Information systems, Internet services, etc) Only 1/5 of enterprises forecast a decrease (although more in auxiliary personnel): Stagnation of demand, critical economic situation of SMEs Ίδρυμα Οικονομικών και Βιομηχανικών Ερευνών


Computer Training and Work: Computer Training and Work


ICT usage in Greece : ICT usage in Greece Πηγή: Εθνική Έρευνα για τη χρήση Νέων Τεχνολογιών στο Γενικό Πληθυσμό για το 2001& 2002, GRNET 1:Ευρωπαϊκός Μ.Ο πηγή EITO 2003 2:Πηγή: e Business Watch 2003 Fast adaptation to computer and Internet by new generation


Research and development in the IT sector: Research and development in the IT sector 40% of IT companies have R&D expenses higher than 5% of annual turnover Companies with 26-100 peronnel have higher expenses 40% of the companies participated in subsidized research co-operations, while 1/5 of the sector collaborated on R&D issues with private funds: an overall 47% has participated in R&D collaborations For 2003-2004 60% declare that they will carry out R&D collaborations with other enterprises and institutions of Higher Education More than 1/3 claim to have a big or very big exploitation of research results Source: IOBE, 2004


Trends and Perspectives of the IT sector: Trends and Perspectives of the IT sector 37% of IT companies feel optimistic 60% feel reserved, with companies <10 people appearing more optimistic Reasons for optimism: Increase of until today low use of ICT and therefore bigger spreading of ICT to the population and companies (SMEs) Acceleration of IS works, creation of a substantial mass of users in the business and general public will motivate the until today stagnant/negative market Cost reduction of infrastructure/ equipment and usage of telecommunication services Higher standardisation of solutions/products and therefore increase of turnover with parallel cost reduction Source: IOBE, 2004


Sources for the development of the sector: Sources for the development of the sector EU Enlargement Spreading of ICT to other developing sectors of the economy, such as tourism Good level of higher and highest technical education Quality of personnel in the labour market for the companies in the sector Improvement of the overall economic climate Finalisation of regulatory framework (mainly telecommunications) Continuation of development of Information Society Customisation of existing software programmes Opening up towards the markets Ίδρυμα Οικονομικών και Βιομηχανικών Ερευνών


Obstacles for the development of the sector: Obstacles for the development of the sector Software piracy Limited size of national market Level of user attitude to the new technologies Organisational level of user companies Due to the lack of outside funds the companies’ own funding is limited Approaching foreign markets is not easy, esp. for SMEs Still poor infrastructure that limits development The big multinationals are profiting from the development coming from the Olympic Games Source: IOBE (March 2004)


IT Companies’ Strategic goals: IT Companies’ Strategic goals Increase of market share in the existing IT market in the existing markets Sales increase through development of new IT technologies Sales increase through introduction of existing IT in new sectors Introduction of existing IT in new geographic markets Emphasis on added value of the offered software programmes, adjusted to the client. Focusing on specified client groups (market niches) Emphasis on the organisational flexibility of the company Emphasis on cost cutting by reducing staff Realisation of mergers and acquisitions Source: IOBE study 2004