Mon, 16/02/2009 - 11:14
We've heard a lot about multinational vendors cutting staff - up to 140,000 globally according to some reports. But the breakdown in Australia is less than clear because many won't divulge the real extent of cuts locally. We do know some are firing - DiData, Alphawest, Telstra, Ingram Micro etc - and some are hiring - Distribution Central, Express Data, Ethan Group. What do you think? Is the Australian market as bad as that overseas?
I think many private companies won't mention if they're firing or downsizing or readjusting their strategy (ie Thomas Duryea) and more.
Having been through several IT downturns, I enjoy this time, as I think from a channel perspective, it enables companies to clear their books occasionally of driftwood. Let's put it this way, if a company is reducing staff due to poor sales, would you hire the person that's been let go - or chase the one that's staying?
The Australian market will potentially be hit worse than overseas primarily due to demand and the pure size of the market. Those that work with government will probably be hit more so than corporate resellers and those that focus on the SMB market may find the next 12 months a struggle as well.
We are just at the beginning of our downturn as the true effect slowly reaches here. But it will arrive and that's when we'll see a lot of new and old names merging or closing - it's an interesting time ahead.
Think of Dot Boom to Dot Bomb, we're entering Credit Boom to Credit Crush...
...companies don't cut the best people first. And believe me they're using the downturn to push through structural change, with no danger of reprisals from staff who are all just happy to have a job!
the cuts are all coming from multinationals or those who are listed as they are under pressure by shareholders and headquarters overseas - look at CA and NEC