Source: cyprus-mail
The Cyprus Information Technology Enterprises Association (CITEA) on Friday issued a warning over sharp increases in RAM prices and other critical technology components, following a meeting with Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou.
The association highlighted that the rapid growth of artificial intelligence (AI), combined with geopolitical developments and supply chain pressures, has created a climate of instability and unpredictable pricing across the technology sector.
According to CITEA, the market has reached a “critical turning point”, with companies required to deliver projects under conditions of extreme uncertainty, continuous price increases and reduced predictability.
The association stressed that it has taken immediate intervention measures, presenting both the scale of the issue and concrete proposals aimed at addressing the situation.
CITEA underlined that these proposals are intended to avoid project delays and protect the sustainability of the sector.
“Without immediate adjustment of the framework, projects are at risk of delays or cancellations,” the association said.
“Companies are avoiding participation in tenders,” it added.
“Financial risk in the sector is increasing significantly,” CITEA continued.
Beyond identifying the risks, the association submitted a proposal for the creation of a European IT hardware price index, aimed at improving transparency and predictability in the market.
The proposed index is also intended to support a fairer distribution of risk across Europe.
What is more, the association confirmed that the proposal will be submitted to Digital Europe, with the aim of initiating discussions at European level and exploring its potential institutional adoption.
“CITEA will continue to intervene dynamically, both at the national and European levels, with the goal of protecting the market, ensuring the smooth implementation of projects, and safeguarding the country’s digital progress,” the association concluded.