The impact of global crisis
While the full impact of the international financial crisis remains unknown it is already perceptible in all the aspects of quotidian business life. Some industries had considerably suffered, but what concerns the IT sphere the situation doesn’t seem to be so deplorable. On the one hand even giant IT-companies experience the influence of the economic meltdown that makes them reduce the staff and lower salaries. But on the other – who but IT specialist can realize the significance of cutting-edge unique technologies? Thus even in the actual situation the IT services are in great demand because nowadays the existence and functioning of any company depends on the technologies that were implanted and massively spread in all business activities.
Still some turnover decrease is observed in this domain. According to available statistic data companies’ investments into the IT will be reduced of 20% all over the world this year. In the judgments of experts in the context of global crisis the customers will demand large discounts. As for IT services providers they will have to reduce the margin and concentrate on business optimization in conditions of intense competition.
In the before crisis period the part of medium and small IT providers on global market was not great. They just couldn’t meet the competition in the light of customers’ acquaintance with worldwide known products. Regardless numerous start-up projects that attracted interest of investors only few could consolidate their position on the congested IT market. The global crisis has radically changed the situation. A lot of enterprises are not able to appeal for services of big companies. Owing to this small software business was given a good chance for development. Customers began to look for different vendors and they got convinced that the proposals of moderate less known IT services providers could be a good alternative of expensive services that are accepted not only as a standard but as the best. All-in-all they were not disappointed as got the same expertise at affordable costs.
In 2009 analysts predict software market decline in the segment “Enterprise” of 20% and an insignificant decline will be observed in the small and medium business sector. At the same time the segment of end consumers will grow on 10-20 %. The great number of analysts withholds the prognosis of rapid market recovery as the situation can develop unpredictably. However the IT services providers will lead serious and consistent work on the market, try to preserve and develop the existing sales channels and to extend new ones. Taking into account the current global situation only this way IT vendors will prosper and shore up their positions.
Tags: Crisis Strategy, financial crisis, global market, IT services providers, Software
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