You can already see the importance of remote work and IT systems, and the sector’s resilience to limitations — in some ways you should look at the crisis as a unique opportunity for IT — says prof. Konrad Świrski, CEO of Transition Technologies Capital Group, interviewed by Computerworld. Here are the most interesting insights after reading this conversation.
The IT industry is doing well and it does not need state support
The IT sector needs much less help than other industries. Financial support should be targeted mainly at small businesses. “The IT industry should show its resilience and ability to react quickly. If some IT companies can’t do it, then they should give the field to others” — says prof. Świrski — “There is a good chance, that after a certain period of turbulence, the Polish IT market will quickly return to normal, looking at IT from the point of view of the production, outsourcing and supply sector for large corporations, and not the retail hardware and software market”. Much larger aid packages would allow for a quick recovery, although at first, it would concern global markets.
The recession in Poland can be extremely painful and a bit longer, but IT should be much better than other sectors of the economy. Not later than in the fourth quarter should work at full power. Of course, it is difficult to rule out a pessimistic variant, which may be, for example, a prolonged global recession, reminiscent of the times of the Great Depression.
Transition Technologies vs crisis
The company has the name “Transition” — change — and this is the most important part of the strategy. You can’t stay in solid business models, markets, products, or even structure or managers. We are preparing for further crises and periods of dynamic growth. One thing is certain: we will be different next year, but certainly with a higher turnover — says prof. Świrski.
2019 was a record year for the TT group. A 25% increase in revenues was recorded, which exceeded the previous year (in 2018 it was 22%). The first quarter was also very good — the company recorded record-high turnover. In the second quarter, progressive signals of decreasing orders from the world economy can already be seen, but this is seen by all Polish IT in the face of a radically slump in both Polish and, above all, foreign clients. In many statements I emphasized that we anticipate the crisis (global reduction of orders and margins in IT) and try to prepare for it — says prof. Świrski — Of course, each crisis is different from the previous one, but long-term, stable orders, good backlog, cash resources and low own costs (which can be further optimized) are always essential.
The company has been trying to prepare for the crisis since autumn last year. The scale of the current crisis is still unknown. It depends on whether and how quickly the global and European economy will return to the right track. However, it is important to believe, that the IT sector will not only recover but that the importance of IT will increase. We can already see that in some way the crisis associated with COVID-19 is a unique opportunity for the IT industry.
Transition Technologies: what’s the strategy?
Transition Technologies Capital Group has offices in Europe, the USA, and Asia. The main production centers are located in 14 offices in Poland. Its ambition is to be a modern IT and engineering company, that combines various business models: from managed services, integration services, development of own products (especially systems for energy and gas industries), the latest IT solutions for industry (PLM/VR/AR) and new solutions for the medical sector, and all this with the addition of a large amount of research and development, as well as gaining new competencies. It develops in such different business models through the holding structure and specialization of companies in a given area and the model of IT services.