Press "Enter" to skip to content

As global tech giants scale back, local players step up

As global technology firms are scaling down their operations as part of cost optimization and organizational restructuring strategies, local tech companies in Türkiye are seizing the opportunity to expand their footprint.

Over the past few years, companies like Microsoft, IBM and Google have reduced their presence, creating space for domestic IT service providers to grow and expand their influence.

This shift has led to strategic acquisitions, including DESTEK’s purchase of IBM Türk’s subsidiary SERI Bilgi Teknolojileri, while Sabancı DX has strengthened its cloud services portfolio by acquiring Bulutistan.

Meanwhile, KoçSistem’s venture, KoçDigital, has expressed ambitions to become a leader in artificial intelligence and data analytics within Türkiye and the surrounding region

Cost, operation overhaul

Global tech companies are moving away from building local teams in markets like Türkiye, opting instead for outsourcing or working with local partners to streamline operations and reduce costs.

Their efforts toward localization often conflict with centralized global strategies, making management increasingly complex.

This trend has accelerated post-pandemic, as companies streamline their structures and shift toward managing operations via regional hubs.

As these global brands withdraw or downsize their field operations, local service providers are stepping up, taking on increased responsibility in areas such as support, installation, maintenance and end-user services.

DESTEK’s acquisition of SERI Bilgi Teknolojileri is a strategic response to this shift. SERI’s strength in end-user support, widespread field personnel and logistical services for EFT payment terminals brings significant depth to DESTEK’s service portfolio.

Spreading trend

Gone are the days when banks, government institutions and large corporations exclusively relied on global tech giants such as IBM, HP and Dell for their IT services.

Companies such as DESTEK, KoçSistem, Sabancı DX, Netaş and Proline have stepped up to fill the gap, offering secure and flexible solutions tailored to local needs.

The restructuring of global tech firms has created a fundamental market shift, allowing domestic IT service providers in dynamic regions like Türkiye to expand, take on greater responsibilities and play a pivotal role in shaping the industry.

AI power spreads to region

KoçDigital is advancing artificial intelligence solutions beyond Türkiye, with ambitions to lead regional digital transformation efforts across Europe, the Middle East and North Africa.

“AI is not just a technology, it is the business model of the new era. In this transformation, we are not only developing the technology, but also creating an impact that originates from Türkiye and expands across the region,” said KoçDigital General Manager Evren Dereci.

By 2025, KoçDigital aims to deploy humanoid robots at facilities across Türkiye, further strengthening the company’s leadership in manufacturing, energy, defense, automotive and retail sectors.

KoçDigital’s achievements in AI and data analytics were promoted at a recent summit that featured over 200 company representatives from 13 sectors.

Dereci noted that the company has already executed more than 500 projects across 14 countries in the past three years, serving more than 150 clients.

“These projects have generated a recurring profitability impact of $350 million and touched an economic volume of approximately $85 billion. Our success lies not only in developing technology but also in offering solutions that directly contribute to business value,” Dereci noted.

Global recognition

Dereci highlighted that KoçDigital has spearheaded a transformation from digital twin technologies to creating “talking factories” in the field. He said AI is now actively used not just in data analytics but also in production lines, decision support systems and operations management.

One of its breakthrough innovations, the GENTIO solution, helps businesses reduce costs by 30% while accelerating digital transformation fourfold.

Its wildfire prediction project, developed in partnership with Koç Holding and the Turkish Ministry of Agriculture and Forestry, was recognized by the French Ministry of Economy under the “AI for Efficiency” program and listed among the world’s top 20 AI projects.

Additionally, KoçDigital’s AI-driven water resource management solution has been accredited for climate change adaptation.

Cloud expertise expands

As global tech giants scale back operations in Türkiye and nearby regions due to concerns over data sovereignty, security and cost pressures, local technology firms are seizing the opportunity.

One of the most successful examples is the strategic partnership between SabancıDx and Bulutistan. In 2024, Sabancı Holding acquired a majority stake in the local cloud service provider.


SabancıDx and Bulutistan CEO Tevfik Kor (L) and Bulutistan General Manger Gökhan Gençtürk. (Courtesy of SabancıDx)
SabancıDx and Bulutistan CEO Tevfik Kor (L) and Bulutistan General Manger Gökhan Gençtürk. (Courtesy of SabancıDx)

Their integrated growth strategy signals the emergence of a new regional tech powerhouse that extends its influence from Türkiye to Europe, Central Asia and the Arabian Peninsula.

Strength of local alternatives

SabancıDx and Bulutistan CEO Tevfik Kor emphasized that, in a period when global firms are limiting or exiting their service offerings, they are creating a structure that meets all cloud and managed service needs under a single roof.

“We want to create a end-to-end local alternative that retains Türkiye’s data within the country, offers AI-powered hybrid and multicloud solutions. With the withdrawal of global giants, we are filling the gap by leveraging our locality and regional proximity advantages,” said Kor.

New era of data sovereignty

Kor also drew attention to the growing importance of data sovereignty globally.

“The new definition of sovereignty begins with the ability to control data. To achieve this, both technological infrastructure and geographic diversity are essential. That’s why we’re expanding into Europe, Central Asia and now the Arabian Peninsula,” he added.

Highlighting the shift in global markets, Kor asserted that Türkiye should not just import technology, but also provide it.

“Our goal is to create a global Turkish tech giant and achieve regional leadership in markets where global players are retreating,” he noted.

1,000-strong workforce, over 30 offices

With the acquisition of SERI, a former IBM subsidiary in Türkiye, DESTEK Bilgisayar has taken a significant step forward. This move aims to fill the gap left by global tech firms withdrawing from certain service areas.

With the completion of the acquisition, DESTEK has absorbed all of SERI’s assets and now integrates IBM’s global end-user support strategies and operational vision into its own operations.

Together, DESTEK and SERI will continue to serve a wide range of sectors including public, finance, telecommunications and general industries. With over 1,000 employees and more than 30 offices, including one in the Turkish Republic of Northern Cyprus, the company is well-positioned to deliver accessible, high-quality IT services across Türkiye.

Founded in 1996 as Bordata Bilgisayar and later becoming an authorized service provider for IBM in 1997, DESTEK had over years expanded its network by partnering with global brands such as Lenovo, Hewlett Packard and Lexmark.

Operating with around 600 staff across seven regional offices in Türkiye and one in the Turkish Republic of Northern Cyprus, the company views this strategic acquisition as a pivotal breakthrough for the Turkish IT sector.

By taking over a critical IBM asset in Türkiye, DESTEK aims to enhance its competitiveness both locally and internationally.


AI-based data labeling startup Co-one secures $1M pre-seed investment

Technology startup Co-one, which focuses on data labeling, an essential building block for artificial intelligence, has secured a $1 million pre-seed investment as it gears up for global expansion.

The investment marks a significant step for the company, which aims to provide high-quality labeled datasets to support AI model development.

The global data labeling market has surpassed $3 billion in 2024 and is projected to reach $7 billion by 2028. In the rapidly growing field, early movers like Co-one are solidifying their strategic positions, especially as AI projects in Europe and the U.S. place greater emphasis on ethics, safety and data accuracy, which has further increased demand for high-quality data labeling solutions.

Co-one is a graduate from Pilot, a startup acceleration program of Türk Telekom (one of Türkiye’s leading telecoms and technology companies), and its visibility has grown significantly since securing the new round of funding.


Team members of the technology startup Co-one. (Courtesy of Co-one)
Team members of the technology startup Co-one. (Courtesy of Co-one)

Founded in 2021 by Ataberk Arman Kayhan and Mert Menekşe, Co-one delivers clean, labeled data crucial for AI systems in areas such as computer vision, natural language processing and autonomous systems.

Growing need

The Annotation Management Dashboard platform they developed enables centralized management of data labeling operations, while their mobile application, Kovan App, provides over 3,500 users with the opportunity to earn income through data labeling.

Data labeling is one of the most essential resources that power AI’s “vision” and “understanding.” AI models used in image processing, natural language processing and autonomous systems can only produce meaningful results with accurate and consistent data labeling. That’s why the demand for labeled data continues to grow.

Co-one has rapidly increased its monthly data labeling volume by 20 times and is now collaborating with over 35 corporate clients. The company plans to utilize its new investment to enhance product development, expand its team and strengthen its presence in the European market.

Backed by strategic support from Türk Telekom, Co-one has accelerated its international expansion and secured its first customers in Europe. While addressing a critical need in Türkiye’s AI ecosystem, the company also aims to boost its global competitiveness with an ethical and scalable data infrastructure.

More from BusinessMore posts in Business »

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *