The Dutch Appendices include analyses of ABN-AMRO which follow the ICT sector and
electrical engineering industry continuously. The main points of interest for Chess are given below:
According to the World Economic Forum the Netherlands has a highly developed IT market and the quality of its Internet structure and IT consultancy is among the best in the world. In 2007, the country jumped six places in the ICT rankings of the Forum to six; in 2006 it was in twelfth place. Online shopping is becoming increasingly popular and at the same time, security, reliability and privacy are important issues. Relevance: The ibusiness business line has aimed its service focus and market segmentation at critical applications on the Internet and supports its (multinational) clients with innovative developments on the Internet. Both sectors (ICT services & electrical engineering industry) display stable growth since 2007; this growth will drop to just over 4% from 2008.
Spending on software is seeing the greatest growth within this; the hardware share is also increasing again after having dropped gradually in recent years.
What is noticeable is the positive analysis for the Dutch electrical engineering industry providing market segmentation and focus are applied. This is due largely to innovation and new technologies (mechatronics, nanotechnology and microsystem technology).
Convergence of media, telecom and ICT will be decisive for the consumer market.
The “networked” society will become reality, and will play a part in both sectors.
Relevance: Chess has processed this growth into its own growth objectives (+10%).
Chess, more than any other company, is capable of integrally translating the shift from hardware to software in its range of services and products. In fact, the raison d’être of Chess is based in the convergence and transition to networked “devices”. The business line M2M Solutions will address this in particular. Internationalisation is on the increase, for both purchasing and sales markets.
Outsourcing and offshoring continue unabated.
At the same time, the competition for ICT services from companies in low-wage countries increases as they open branches in the Netherlands and Europe.
Relevance: Chess already purchases globally in the scope of its production logistics. This also
applies to offshore software development (see also under “shortage of personnel”).
Chess sees off this competition by offering the market services and products which are highly
focused on the specific domain knowledge and the integration of hardware/software and network (so-called “managed chains”). Finally, Chess offers life cycle management with the side effect that the hourly rate is less central to the service, while there is a well-developed and superbly-managed system throughout the entire duration. The Netherlands, along with the United Kingdom, is at the forefront of Europe in terms of innovation, outsourcing, offshoring and IT consultancy. The presence of many multinationals
has a positive impact on these services.
The government invests strongly in innovative projects for both the ICT services and the electrical engineering industry. Relevance: Chess is the de facto business service provider in the field of innovative ICT projects. Chess is already implementing a number of government projects with its innovation team (incl. Point One); this shall continue as it is.
It is essential to the strategy that that this capacity is given greater PR weight. The shortage of qualified personnel inhibits the growth of both sectors and puts pressure on
margins through wage increases.
Relevance: Chess also experiences this pressure on the labour market. One of its measures is
to outsource development work to Execom-Serbia. Chess has entered a capacity agreement
with this party and has executed projects since 2007 in which the Chess development environment, standards, quality requirements and integral testing have been implemented.
This capacity will also be used in 2008.
Furthermore, Chess will train young (easier to recruit) talented engineers for crucial roles such
as senior engineer and later on, architect.
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