Greece

    Impacts on the IT Business
 
 

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    The major impetus for the Greek IT Business had been the actions of OTE. As expected, with the introduction of mobile telephony and the Internet, the local IT businesses managed to find new fields of operation. The major change has been the establishment of numerous small- and medium-size enterprises that offer service to mobile phone users. Similarly, a number of ISPs emerged. As both markets mature, consolidation is under way. The market is currently too small for foreign companies to enter profitably.


    The ever-increasing needs for IT-related products have provided a boost in the IT business in the past few years. At first it was the introduction of mobile telephony that created the need for a country-wide network of dealers. Nowadays, each neihborhood will have its own mobile telephone outlet and service centre; it would not be an exaggeration to claim that these shops have become to the eyes of the Greeks an indelible addition to the local tavernas and kiosks.
    With time, needs for IT-related hardware became more sophisticated. PC and advanced telecommunications equipment manufacturing are experiencing explosive growth (18% p.a. on average since 1997, claimed to be one of the fastest growth rates in Europe). While foreign players get a substantial market share, the Greek manufacturers take advantage of a particularity of Greece: the Greek alphabet and language, which necessitate specialised software as well as hardware (especially keyboards).

Greek keyboard layout
(all Greek to everybody)

    The 2004 Olympic Games give an opportunity for foreign companies to enter the market with a substantial possibility for profits. The Games, as well as the overall situation of the country, will necessitate a substantial investment in permanent IT infrastructure. This is definitely the time for foreign firms to approach the potential Greek clientele and market their products; Olympic Games sponsorship programs could provide a first-class chance.
    In general, there is major demand for IT-related products in Greece. Given the limited size of the market, though, direct investment is rather out of the question. Licensing of products to local manufacturers who have the expertise to convert them to the Greek standards looks far more appealing. In some cases, this very expertise has enabled Greek hardware manufacturers to get contracts with foreign companies to adopt the latters' products for a number of foreign markets.