Shrinking margins in the systems integration market has prompted Fujitsu Australia to merge its subsidiaries, Logical Solutions and Southmark Computer Systems, to form Southmark Solutions.
According to David Ballantine, general manager of corporate strategy for Fujitsu, a review of the two organisations showed similar inefficiencies and it was decided that making changes to one entity was easier than two.
"The thing that has bothered everybody in the industry is reducing margins driven by the fact vendors are moving to a direct model and that the market is more educated about what it wants and [can source its own products]," Ballantine said. "We had determined the change projects which had to be run in the two companies, and as we also had to recruit a managing director for both anyway, it made sense to merge now."
Ballantine said the company has improved customer order taking methods, vendor product and component ordering procedures and product and component delivery processes to increase efficiency.