Annual Report 2023

André, Stijn: 2023 witnessed several landmarks for Cegeka. What were the highlights?

André Knaepen: 2023 was a pivotal year for us, with the acquisition of CTG in December standing out. This acquisition marked a significant transformation for our company, propelling us from a European player to a global one. It has given us a solid base in markets where we had no previous presence, including the US, the UK, Canada, Colombia and India. 

Stijn Bijnens: This acquisition dovetails with our expansion strategy. It presents an opportunity to leverage our expertise and services in new regions, merging our nearshore experience with CTG’s capabilities in Colombia and India. With this move, we can now offer our customers a comprehensive right-shore strategy. We have indeed become a force to be reckoned with, with a team of over 9000 people spanning 19 countries worldwide. 

What does this mean for ‘In Close Cooperation’, Cegeka's trademark? 

André Knaepen: ‘In Close Cooperation’ remains a core value at Cegeka, and that won't ever change. Consider that a rock-solid promise. CTG is a perfect fit in that respect: we’re both easy to talk to, easy to do business with, and share a very pragmatic ‘getting things done’ work ethic. Tom Niehaus, the Executive VP of CTG Americas, is also a true entrepreneur. That kind of spirit is exactly what we look for in our leaders.  

Crossing the threshold of 1 billion euros is another milestone. Can you provide details about this financial performance? 

André Knaepen: We closed the fiscal year 2023 with a consolidated revenue of €1.03 billion, an 18% increase from the year before. And we’re on the right path to reach the set target of €1.4 billion in revenue for 2024. According to the IFRS financial statements, our consolidated revenue stands at €988 million, up by 19% from 2022. This figure does not include the contributions from nexuzhealth and Smartschool, as they are not exclusively controlled by Cegeka. Including these brings our group revenue to €1.03 billion. 

We've built a reputation for being smart and results-oriented innovators. Can you elaborate on that approach? 

Stijn Bijnens: Timing is everything in innovation. Go too fast and you confuse everyone. Go too slow and you miss the boat. The trick is to deploy the right technology at the exact right moment. The hype surrounding new technology is substantial, and IT complexity is constantly growing. On top of that, we’re dealing with different speeds of change. Technology changes fast, while organizations adapt at a more measured pace. 

This creates a critical gap, and that's where Cegeka thrives. We bridge that gap by illuminating what I like to call ‘the optimal path’ for our customers. We can do this because we have what it takes: craftsmanship in connecting the power of legacy and existing systems with the potential of innovation, a comprehensive portfolio, a wide range of engagement models, and a unique way of working, crystallized in ‘In Close Cooperation’. Add 9000 skilled professionals and a commitment to craftsmanship, and you have a truly special mix.

André Knaepen: We don't innovate just for the sake of it. Every project we do must have a real impact for our clients. It needs to bring them tangible business benefits. That's why we focus on customer-driven innovation. We begin by understanding client needs and investigate how emerging technologies can help them succeed. Not the other way around. 

But we're still upholding our commitment to the Trinity of Innovation?

Stijn Bijnens: Absolutely. The Trinity of Innovation, highlighting the synergy between Cloud, AI and Ubiquitous Connectivity, is becoming increasingly relevant. We've just started scratching the surface really, especially with 5G still being deployed worldwide and AI just starting to gain momentum. I introduced the concept three years ago, pinpointing areas where I foresaw significant enhancements in operational efficiency over the next decade.

As 5G expands internationally, I’m expecting to see progress. While the number of real-world Trinity cases are still limited today, they do exist. For instance, we've already been involved in projects like SENSE with Citymesh, showcasing how AI-enhanced drones within a 5G network can assist emergency services in saving lives. And Citymesh is actively developing industry 4.0 solutions, leveraging the power of IoT and ‘0G to 5G’ connectivity. 

What advancements have we made in AI and Cloud? 

André Knaepen: With 2023 being labelled ‘the year of AI’, our Data and AI division – a robust team of over 400 professionals, and counting – felt that impact firsthand. AI’s rise to fame last year generated considerable interest in chatbots and ‘GPT on your own data’ projects. But Generative AI represents only a fraction of what AI can do in a business context.  

The AI surge also led to increased activity for our data team, focusing on advancing customers' data maturity and transitioning them to become more data-driven. We also became actively involved in projects such as the launch of Microsoft Copilot, and ‘Smart Signal’ in Smartschool, a pilot aimed at leveraging AI to tackle early student dropout rates.

Stijn Bijnens: Our expertise spans decades, particularly in hybrid cloud solutions. We have deep knowledge of Microsoft Azure—Microsoft being our go-to cloud partner—and maintain our own private data centers. This is increasingly important as we move towards a ‘Renaissance’ of the private cloud. There are several reasons for this: while private clouds remain essential for legacy systems, they are also increasingly being considered for AI. 

Private clouds are especially useful for training so-called small language models (SLMs) tailored to specific algorithms, which is often more cost-effective than using large language models (LLMs). As CIOs reconsider their cloud strategies, a hybrid mix—what we call the Cegeka ‘compliant’ hybrid cloud—is likely the best long-term solution, balancing experimentation, cost efficiency, compliance and security. 

And we keep making waves in cybersecurity. 

Stijn Bijnens: We do. Our cybersecurity team continues to outpace the industry, exceeding market growth and holding onto the number 1 spot in Whitelane's Security Services ranking. This repeat win highlights our commitment to delivering exceptional value to our clients. We're not just focused on basic security; we're building long-term cyber resilience for our clients. Innovation is key here. 

Let's loop back to our starting point: 'In Close Cooperation.' We often say our customer engagement portal – Horizon – is a digital twin of this approach. How so?

Stijn Bijnens: Because it's our way of staying intimately connected to our customers' needs. Horizon isn't just a platform; it's an AI-infused app that allows CxOs to monitor their security posture and IT operations anytime, anywhere—even on lazy Sundays from the comfort of their sofas. In the core, Horizon goes beyond convenience; it's about offering clarity and foresight. I’m also happy announce that in the coming year, we'll integrate carbon footprint observability, reinforcing our dedication to ESG and sustainability. 

To conclude, how do you see the future?

Stijn Bijnens: It's been an extraordinary year for us, one that has marked a significant turning point. However, complacency isn't in our DNA. We're already looking ahead, ready to take on the next big challenge. With a robust team of 9000 ‘Cegekans’ and a major acquisition under our belt, we're poised for success.

André Knaepen: I wholeheartedly echo Stijn's sentiments. And I will add that none of our achievements would have been possible without the loyalty of our clients, the dedication of our people and the collaborative efforts of our partners and stakeholders. To each and every one of you, I express my sincere gratitude. Thank you for being an indispensable part of our journey.

Thank you, André Knaepen and Stijn Bijnens.