Risks and Uncertainties

Risks and Uncertainties

The company’s risks and uncertainty factors relate to increasing competition and potential significant changes in the company’s operating environment and service areas. General economic trends and changes in our customers’ operating environment may have an unfavourable impact on the company’s business, financial position and result through slower decision-making and the postponement or cancellation of IT investments. Although our pricing models for the service business counteract such cycles, the pricing models for SaaS (Software as a Service) change the structure and timing of revenue streams.

Implementing our growth strategy will place new demands on both our organisation and its management. Our ability to recruit, retain and develop the correct competence – and also to correctly time our offering to meet demand – will play a vital role.

In line with our strategy, Digia is also seeking growth through acquisitions. However, we cannot be certain of locating suitable companies for acquisition or of successfully integrating them.

Major customer projects involve both business opportunities and risks. As customer projects increase in size, so do the risks associated with profitability management. It is important for us to be able to handle extensive contract and delivery packages.