INTERVIEW Daniel Metz, CEO NTT DATA: “Romania must get out of the trap of cheap manufacturing”

In the next two years, a lack of appetite in investments and consumption will characterize the markets, according to Daniel Metz, CEO NTT DATA Romania.

“Any crisis is, at the same time, an opportunity. Those players in the economy who will find smart solutions to escape into a future of technology will be the winners of the crisis,” he told The Diplomat-Bucharest. “The local market is under the influence of the decision-makers’ insecurity and by the entire population. Not only consumption but also investments decreased significantly. It will be a long process of regaining confidence in the future. The signs of an economic decline began last year. The pandemic has fatally aggravated the slipping into a lasting crisis.”

In his opinion, Romania must get out of the ‘trap of cheap manufacturing.’ “There are necessary measures to implement economic concepts leading to exports based on high value-added technology and manufacturing,” he explained. “We want to play an important role in digitizing the Romanian economy. The local market made last year over 30% of our turnover. In the last two years, we have reshaped the profile of our company. We have taken decisive steps in positioning ourselves as systems integrators able to carry out large, turnkey projects.” 

What is your company’s business approach in the current economic context?

NTT DATA Romania is a company whose products and services are of high technological level, being at the same time internationally competitive. Over 50% of our turnover is in the automotive field. This industry is under high pressure, in the direction of a continuous efficiency.

The impact of the current crisis is low on the activity of our company. The multi-annual program for developing our portfolio of products and services, and expanding the markets in which we operate, definitely will compensate for the recoil felt. We start from the consideration that our turnover will increase this year by over 15%.

What are the market tendencies in 2020?

International markets are in a deep crisis. Systemic production, logistics, and transport chains are deregulated. It is necessary profound sterilization based on demand and supply ratios, which in turn affects the consumer insecurity.

We are dealing with a sectoral crisis. Unfortunately, the classic economic growth (automotive industry, car construction, industrial installations, real estate, etc.) suffer the most.

I believe that in the next two years, a lack of appetite in investments and consumption will characterize the markets. Any crisis is, at the same time, an opportunity. Those players in the economy who will find smart solutions to escape into a future of technology will be the winners of the crisis.

How would you describe the latest developments regarding the local market?

The local market is under the influence of the decision-makers’ insecurity and by the entire population. Not only consumption but also investments decreased significantly. It will be a long process of regaining confidence in the future.

The signs of an economic decline began last year. The pandemic has fatally aggravated the slipping into a lasting crisis. We will need a lot of patience.

How would you describe the measures taken by the Government so far regarding the business sector?

The measures taken so far are welcome and managed to cover particular necessities.

Primarily, these measures focused on protecting employees and providing the financial means necessary to pay for their economic rights.

The big question is how the Government can meet the industrial branches deeply affected by the pandemic protection measures. I am referring to the hospitality sector (hotels, restaurants, and chalets), the events industry, etc. In this direction, I believe that there are still many things to do.

How would you alleviate Romania’s economic stress after this crisis?

For the coming years are needed clear development strategies. We must identify our differentiators in international trade and develop them systematically.

Romania must get out of the trap of cheap manufacturing. There are necessary measures to implement economic concepts leading to exports based on high value-added technology and manufacturing.

What can Romania do to mitigate the COVID-19 impact on the business sector?

It is fundamental to urgently digitize the administration, whether we are talking about the local or the central one. Only through digitization, we can take essential steps in significantly reducing bureaucracy. To content the economy, the most important action the Government could do is to reduce bureaucracy.

The second significant measure is the amplification of investment projects in infrastructure. The national economy suffers from a lack of infrastructure.

The transport infrastructure represents the vascular system of a modern export-oriented economy. We must intervene urgently in this direction.

What are your short and medium-term plans in Romania?

Our company’s plans have a long-term trajectory. We want to play an important role in digitizing the Romanian economy. The local market made last year over 30% of our turnover.

In the last two years, we have reshaped the profile of our company. We have taken decisive steps in positioning ourselves as systems integrators able to carry out large, turnkey projects.

We want to develop actively in the Eastern European markets, keeping Romania, the central location of the regional cluster.

We have high confidence in our team. We are confident that policymakers will take the best measures to ensure the sustainable development of the IT industry in Romania.