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SA resellers survive outsourcing onslaught

SA resellers survive outsourcing onslaught

Adelaide reseller Lodin Information Systems has launched an initiative that it predicts will add 20 staff and $5 million in revenues during the coming year.

The company, which is predicting a 1997-98 turnover of $30 million, has created a new division focused on delivering IT-related services.

Lodin has boosted staff by more than 50 per cent and doubled turnover during the past two years.

While the post-outsourcing IT climate in South Australia has claimed some casualties, resellers such as Lodin and PC rival Microbits have posted strong growth.

Lodin managing director Roger Godwin said the involvement of EDS in the South Australian IT economy had been a good thing.

"It opens our horizons rather than closes them," he said. "We view that as an incremental opportunity, that is, for additional business.

"There may have been some rationalisation, but there is no single reason out there at the moment why a business would fail.

"Businesses have to stand in their own right. They have to have a model that works which is profitable. We have to be careful not to blame other reasons for the collapse of a business.

"We've had a 53 per cent increase in employment in the past two years."

Godwin said Lodin was also providing "incubation" facilities to start-up IT companies based on either alliance agreements or equity investments.

"Lodin has had to stand on its own feet and be viable in its own right in the markets in which we operate," he said.


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