Prospects of the ICT sector in Greece
Prospects of the ICT sector in Greece
Prospects of the ICT sector in Greece
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Study <strong>of</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>Greece</strong>: Current Situation and Future Trends<br />
Deliverable 14: <strong>Prospects</strong> <strong>of</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>Greece</strong>-policy implications<br />
are able to be competitive even at an <strong>in</strong>ternational level. On <strong>the</strong> contrary, small firms, <strong>in</strong><br />
order to survive, should adopt more targeted strategies that focus on niche markets or<br />
operate complementary to large firms-clients.<br />
Therefore, a major problem for <strong>ICT</strong>s firms is <strong>the</strong>ir “shallowness”, as <strong>the</strong> <strong>sector</strong> does not<br />
“learn”, rema<strong>in</strong>s small <strong>in</strong> size, scattered, and without specialization (“everyone sells<br />
everyth<strong>in</strong>g”). The excessive focus on box-mov<strong>in</strong>g that characterized past years’ growth has<br />
been myopic so far, as it led to “easy” sales, but with no longer term prospects. But<br />
nowadays, <strong>the</strong> pr<strong>of</strong>it marg<strong>in</strong>s for <strong>the</strong>se activities are very limited, as <strong>the</strong> prices have been<br />
reduced to very low levels. Hence, emphasis should be placed, not on sell<strong>in</strong>g <strong>the</strong> <strong>ICT</strong><br />
equipment, but on sell<strong>in</strong>g <strong>the</strong> service and <strong>the</strong> actual benefits that <strong>the</strong> users can acquire.<br />
Employment <strong>in</strong> <strong>the</strong> <strong>sector</strong>: Slight <strong>in</strong>crease but under precarious conditions<br />
Employment <strong>in</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>the</strong> next couple <strong>of</strong> years will probably <strong>in</strong>crease, as several<br />
positive signs have been reported 18 . It seems that <strong>the</strong> imbalances <strong>of</strong> <strong>the</strong> previous years have<br />
been smoo<strong>the</strong>d. The expected <strong>in</strong>crease <strong>in</strong> demand, <strong>the</strong> need for new value – added products<br />
/ services and <strong>the</strong> expansion <strong>of</strong> bus<strong>in</strong>ess activities <strong>in</strong> new technological areas, <strong>in</strong> conjunction<br />
with <strong>the</strong> healthy economic conditions support <strong>the</strong>se positive trends. The empowerment <strong>of</strong><br />
employment <strong>in</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> is crucial, as it <strong>in</strong>volves well tra<strong>in</strong>ed, highly specialized parts <strong>of</strong><br />
<strong>the</strong> national workforce.<br />
However, <strong>the</strong> <strong>in</strong>dividual <strong>sector</strong>-based particularities should not be ignored. In this framework,<br />
new vacancies are located ma<strong>in</strong>ly <strong>in</strong> Trade and secondarily <strong>in</strong> Services. On <strong>the</strong> contrary, <strong>in</strong><br />
<strong>the</strong> manufactur<strong>in</strong>g part <strong>of</strong> <strong>the</strong> <strong>sector</strong> (manufacture <strong>of</strong> <strong>ICT</strong>s equipment), <strong>the</strong> trends are not<br />
positive. Firms from this sub<strong>sector</strong> have to face <strong>the</strong> competitive pressure from lower cost<br />
countries. Their products that are imported <strong>in</strong> <strong>Greece</strong> have a low price and a relatively good<br />
quality.<br />
Fur<strong>the</strong>rmore, some exogenous factors stemm<strong>in</strong>g from <strong>the</strong> <strong>in</strong>ternational environment, (i.e as<br />
mergers & acquisitions <strong>of</strong> some important mult<strong>in</strong>ationals), should not be ignored. As <strong>the</strong>se<br />
events are proliferat<strong>in</strong>g at <strong>the</strong> <strong>in</strong>ternational level, <strong>the</strong>y may affect <strong>the</strong> <strong>in</strong>ternal environment as<br />
well, lead<strong>in</strong>g to possible personnel reductions. Moreover, and <strong>in</strong> a more longer-term<br />
perspective, <strong>the</strong> growth <strong>of</strong> <strong>the</strong> relevant <strong>ICT</strong> <strong>sector</strong>s <strong>in</strong> neighbour<strong>in</strong>g countries and <strong>the</strong>ir<br />
18 National Statistical Office’s survey on Human Capital, Field Research on <strong>ICT</strong> firms, Kantor studies,<br />
Boyden A<strong>the</strong>ns studies and BCS from IOBE.<br />
October 2006<br />
Observatory for <strong>the</strong> Greek IS 27