RRF projects are the country’s golden opportunity
The President and CEO of Cosmos Business Systems, talks exclusively to Sofia Mytta and ICTweekly about the present and future of the country’s IT market, the challenges and opportunities that lie on the horizon and the “one-way street” of partnerships to fulfill the projects in progress. At the same time, he talks about the need to change the philosophy of the market and the need for cooperation with universities.
Mr. Dafnis, how has the financial year of Cosmos Business Systems moved this year and what can we expect for 2024? What market share does the company have today?
To examine this year’s data, we should look back at the recent period and especially at what happened in the market after 2019, when the market is essentially restarting. More specifically, the change of government in 2019 combined with the creation of a strong Ministry of Digital Governance, the increase in investments and the presence of the Recovery Fund by induction of the Coronavirus, we have a strong market stimulus, with prospects. However, this stimulus, due to many parameters and the combination of the lockdown, has been slow to reach the market, with the result that, while there are awards, very few projects have been completed and priced. So, to sum up, the market started to be positively affected from 2022 and 2023, in terms of results. Respectively, Cosmos’ results for 2023 are expected to be particularly increased compared to 2022, with an increase of 50%, and will reach 60+ million, from € 41 million in 2022. These results will be the largest achieved by the company to date, gaining a significant market share of both the private and public sector in Greece and Cyprus. The question of what share the company occupies is difficult to answer, as we operate in many industries, such as infrastructure, telecommunications, networks, cyber security, Software and Services. In our opinion, the company is in the top 3 of large-scale systems integrators in Greece and Cyprus.
What is the company’s investment plan about? What is the further objective both financially and business-wise?
For better or worse, the technology sector is an industry in constant evolution and search for new solutions. This means that in order to be present in the market, like Cosmos for the last 35 years, and meet the needs of your customers, you must constantly invest in technology and infrastructure, training and quality of services, know-how and efficiency. The investments currently underway are localized in all the above areas, which we will present in detail at the next press conference on November 22, along with the goals and plans for the next 6 years. Apart from Greece, Cosmos Business Systems is also active in Cyprus and offers services in third countries.
How do you see the IT and Telecommunications and Security sectors evolving both in Greece and internationally? Are there issues that the technology industry in Greece needs to raise and resolve?
I think the pandemic period caused a global boom in the tech industry, and this accelerator will affect the whole decade. If we consider that in 2019 teleworking and distance learning were exotic concepts, used by few and today the vast majority are familiar, we easily understand how much momentum the market got. From computing to communications networks and data centers. So I would say that horizontally in the western world, the market is growing and will create new opportunities – “The company is in the top 3 of large-scale systems integrators in Greece and Cyprus.” ries. The difference is that solutions are now much more complex, requiring highly knowledgeable human resources and large investments in infrastructure and working capital and fixed assets. The security of communications and networks is something that will concern us more and more, in all areas – production, data storage, communications security, disaster recovery, due to greater exposure, more and more network activities. Finally, regarding the issues of the industry, I will limit myself to the most important one, which is the labor market and the interconnection of productive faculties of universities with businesses. For the next period, until 2030, shortages of trained staff will be a strong cause of risk for project implementations and support.
How does CBS, along with its subsidiaries, move to new technological innovations? Which sectors and customers is it addressed to and how does it give them the opportunity to upgrade their infrastructure?
Since 2006, the company has been investing in areas such as value-added services, Software and Cyber Security, believing in a long-term and lasting relationship with the customer. Software technologies related to Artificial Intelligence, business analytics and Business Intelligence, mobile applications, next generation networks, and cyber security, as well as data security and business continuity are areas that are already in the portfolio of solutions we offer. The upgrade of our customers is based on the relationship of trust we have created and the presentation of new solutions that will make them more efficient and more effective. This is where the value of the professional consulting services we offer lies, so that together with them we can build the roadmap of the next five years.
The projects currently claimed by Cosmos Business Systems in both the private and public sector, how much do they amount to in terms of their budget?
“The upgrade of our customers is based on the relationship of trust we have created and the presentation of new solutions that will make them more efficient and more effective.”
You will allow me not to be tempted by figures at the moment as a long report is imminent in a few days’ time. But, as I said, both the private and public sectors are sectors of equal importance and very significant investments are expected. It’s just that the public sector will have a much greater contribution as it enters the implementation phase, from the planning phase. In any case, our group will be in the top 3 positions, as I mentioned above, while it also claims the lead in some areas.
What is CBS’s role in the digital transformation of the State? Does it contribute to the implementation of any specific projects and what are they? Is there any further goal?
The truth is that the projects of the Recovery Fund-RRF and the NSRF 2020-2027 are the golden opportunity of the country for the state to finally acquire a digital infrastructure that will be corresponding to its position in the global economy. Combined with the Government’s will for digital modernization (because brave restructuring and reengineering decisions are required at the same time), I firmly believe that at the end of this decade we will be talking about another state. I will mention a few examples, as the RRF includes about 420 flagship projects, such as digital justice, digitalization of health, urban planning, digital literacy and smart schools, smart cities, restructuring of land registries and land registry, Social Security, the Ministry of Finance and so many others. In all the above and many more, our Group has the honor and responsibility of participation and implementation, so that 10 years from today we will be entitled to say that we were among those who founded the new Digital Greece! Regarding the next objectives, the main and basic is firstly to be implemented successfully and within the timetables and secondly to be followed by the next governments with maintenance and expansion programs, so that they do not remain a dead letter after the period of free maintenance. And therein lies the responsibility of businesses through collective bodies, as well as the State.
Do you consider that there is a need for a combination of business groups in order to claim and implement projects that are being prepared in the public sector? Tell us about the partner program of Cosmos Business Systems.
Experience so far has proved in practice that the sizes called upon by the business community and especially by IT and communications contractors, far exceed their sizes to date, making partnerships a one-way street.
Both in terms of complexity and capital requirements, since the costs are frontloaded and their payment is “away” 1 to 2 years. This need has given rise to large-scale partnerships, associations and subcontracts. For example, Cosmos in a single project concerning the construction of networks in all Universities and Hospitals of the country, – over 1200 buildings and 2,000 km. cabling, works with over 75 subcontractors across the country. Similarly, the vast majority of projects with budgets of €5 million or less or even less are carried out by associations and subcontractors. Even from business associations that, until a few years ago, were key competitors! These programs of partnerships and partners – with a high level of specialization – are the main pillar of growth for the next period and in this area of search, certification and relationships Cosmos will continue to invest.
