End of Eldorado in IT, acquisitions are coming

The debts of IT companies and their clients are growing rapidly, developers lose their jobs because they replace them with AI – informs “Rzeczpospolita” in the Wednesday edition. The fragmented industry is condemned to consolidation – says “Rz”.

The domestic IT technology sector was at the turning point. Companies that have so far associated with innovation and expansion have recently started to slow down specialists and limit the budgets for development – the newspaper pointed out.

They have a destabilizing business of their growing debt. “Rz” reported that the IT industry has over PLN 317 million in debts. Her debt during the year increased by almost 20 percent. – results from the latest data of the National Debt Register (KRD).

“Currently, 7.3 thousand entities operating in the digital economy area have unpaid receivables. It is more than 5 percent more than a year ago” – noted the president of the National Debt Register of the Economic Information Bureau Adam Łącki, quoted by the daily.

Little entrepreneurs running a sole proprietorship must return to creditors as much as PLN 122 million, companies – even more, because PLN 195 million.

“The IT industry, which for years has enjoyed the opinion of a financially stable, has been losing reputation for some time. The reasons may be different: from the decrease in the number of domestic orders, through growing operating and employee costs, to a longer payment cycle in contracts. This sector is very crushed in Poland, so consolidation will accelerate in it. Higher entities will absorb smaller players” – predicts Łącki. (PAP)

GKC/ KTL/