Local ICT Leader is Entering Global Arena
With ICT exports nearing two billion euros in just six months—a notable 18.84% rise from last year—there’s cautious optimism about the IT industry’s stability. During these challenging times, local ICT leader M&I Systems Co. made a bold move by partnering with Czech-based Seyfor. Seyfor, one of Europe’s largest ICT providers, acquired a 70% stake in M&I, while founders Vladan and Nikola Balaban retain 30% and continue to guide the company’s growth and strategy.
Today, we’re bringing you an exclusive interview with Vladan Balaban, Co-owner and President of M&I Systems Group. In this conversation, Vladan offers valuable insights not just into the future of M&I Systems, but also into the broader landscape of the ICT sector. He discusses the evolving role of strategic partnerships, the industry's challenges and opportunities, and how companies like M&I are positioning themselves to lead in this dynamic environment.
What are M&I's plans for the future?
VB: As we saw in the report issued a few days ago, by the Ministry of Information and Telecommunications, the results of the entire IT sector, for the first half of the year are truly impressive. This is the best encouragement for our business move, but at the same time an additional indicator that with this strategic partnership, we made the right move - at the right time. Our future plan is quite clear: expanding beyond regional boundaries and establishing a stronger presence in European and global markets. Our proprietary products and services give us the power to be ambitious and plan beyond the borders of only service outsourcing. Through this strategic partnership, we aim not only to elevate our company but also to position the entire ICT environment in Serbia as a future major exporter of ICT products, rather than merely a top-tier IT outsourcing provider, which, despite the significant development of the local ICT sector, remains the primary growth driver for the local IT industry.
What does the strategic partnership and acquisition of Seyfor bring to M&I Systems Co. and its employees?
VB: Digital transformation is a complex process, especially when you are at its very core, as is the case with our company. For all our employees, this has meant not only developing software solutions but also acting as unofficial ambassadors in the transformation of other industries we collaborate with. The situation has drastically changed in recent years, with the rapid acceleration of AI, machine learning, data science, and business process and work automation - all under the same umbrella of digital transformation. Given the difficulty and near impossibility of keeping up with the integration and implementation of such solutions by global giants, the decision for a strategic partnership seemed as the right direction for us. Not only for the further development of our business but, most importantly, for the continued development of our people - the qualifications, expertise, and opportunities they can gain from the company's exposure to broader European and global markets.
What can other local companies in our region learn from your collaboration with Seyfor?
VB: Strategic partnerships in the IT sector are incomparable to those in traditional industries. For us, this has been a two-and-a-half-year learning process, since we entered negotiations with Seyfor. Every crisis is also an opportunity, and the fact that our company maintained stability and even increased its workforce during the peak of the IT sector's negative wave showcased that the quality of our products, services, and personnel is crucial for sustaining the interest of major European and global companies. However, I believe the most important lesson others can learn from our experience is that when you aim to grow, both organically and through acquisitions, finding the right strategic partner is paramount. A partner who supports you not just financially, but also in your further market and strategic transformation.
How has a family-owned company developed over 30 years become part of a large system?
VB: We have yet to see, but I am confident that we are now entering a smoother period. The values and organizational culture that have been nurtured at both M&I Systems Co and our Group for 30 years will remain intact. We anticipate further enhancement from a healthy system that, while rooted in family origins, has long outgrown the confines of a local enterprise. Working with major tech companies and global partners like SAP, Salesforce, Microsoft, IBM, Celonis, Software AG, Asprova, Aforza, FIS, STT, and many others has globalized our mindset and approach. Therefore, the time has come to globalize our operations and bring our quality and expertise to the global market.
How will this acquisition impact the attraction of new talent and the employer brand positioning?
VB: I like to think of this as a strategic step forward and a developmental opportunity, first and foremost for our employees. Through the partnership with Seyfor, career opportunities for them become much more stimulating, with access to a significantly broader range of channels and markets, and the ability to adopt the best European and global practices, which will enhance both the attractiveness of their work and our employer brand. I believe the potential of the entire IT landscape, and especially our company, which continues to operate under the same brand and hence maintains local recognition in the industry, will achieve new heights.
How did you communicate the changes to employees and prepare the organization for the transition?
VB: Although the transition period was managed according to all formal standards, dialog with our people was entirely transparent. We regularly kept them informed on all important details through internal communication channels and also held several meetup gatherings. Our employees were not alienated from the process; on the contrary, they were the driving force behind our decision to take this step. Therefore, two-way communication and dialog were mandatory for us. The uniqueness of each team required additional individual and dedicated approach, even a personal, which ensured that all our employees felt like part of the change and innovation happening, rather than being just observers. Preserving our entire workforce as our key asset, along with the specific culture they have built and their sense of security with what is coming, were fundamental in guiding this process.
The strategic partnership between M&I Systems Co. and Seyfor represents a significant step in the evolution of the company, offering both opportunities and challenges. This move provides a valuable example for other local companies in the ICT sector, demonstrating how to navigate growth through thoughtful collaboration. By focusing on expanding its market reach and investing in its people, M&I is well-positioned to continue its development, while also contributing to the broader growth of the Serbian ICT industry.
