Techway quits PC production

Techway quits PC production

Techway has split into two separate business units: Tangent (software development and contracting) and Network Services (design, supply and integration of wide-area networks). The move follows 12 months of reorganisation within Techway, and sees the company moving away from its former core business as an OEM PC manufacturer. 1995 was a tough year for Techway: the company expects to post losses of $1.7 million for the calendar year, but says the recent reorganisation will lead it back into profit.

"Historically, the company had a couple of manufacturing divisions," Ian Cameron, Techway finance director, told Australian Reseller News. "However, we were always a niche player, selling about 2Ð4,000 PCs a year. Out of that, we developed a customer service and support business that grew to a $4 million a year business.

"About a year ago we decided to take our service business separate from the rest of the company and see what we could do with it," Cameron said. "In that time we've become a preferred installer of wide-area networks. In particular, we've been doing a lot of work for Cisco and Telstra."

What led Techway to focus on service and systems integration over manufacturing? "Hardware margins have been shrinking around the world," Cameron said. "PCs have become a commodity. For that reason, we decided to split out our customer services group and grow it as much as we could."

Cameron says Techway's two new divisions will focus on the high end of the market. "We don't really want to busy ourselves with local-area networks; there are lots of other people who specialise in that. We're going to concentrate on mainframe systems integration and the like."

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