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    Are we at the bottom?

    I think we have lost more in the last couple of months due to the ways of erring CEOs then we did due to sept. 11.

    And now some of the consultant firms are getting steadier (no major lay offs) and some of the supply chain mmgt firms are even claiming slight growth.

    So do you think that the IT market will grow this year in the 3rd or 4th quarter? I almost think just like the recession was not predicted correctly so also the expansion will be unexpected.

    #2
    consulting firms getting steady? did you not hear about the major cuts at IBM especially in their services dept. KPMG consulting and Accenture will have cuts as well, end of 3rd quarter will be pretty scary.

    Thsi si especially true with consulting companies that have gone public, because they are answerable to the stock market, and not to the Partners. Partners could make decisions to have lower profits while keeping their teams and resources intact for an upswing.

    Would there be an upswing in the IT services market, undoubtedly, will it be like the good old days. Not yet. Best place to be in IT services right now is to be in public sector.

    This is my analysis based on what I know about internal situations at various companies.
    The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

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      #3
      ..I will add though that things at consulting firms are not as grim as they were just a few months ago, and should improve. Forrester, Gartner etc predict a 4% growth rate in IT spend through 2004 and then 7% growth rate after that.

      Essentially so many ppl have been cut across the board in consulting firms that the mgmt really has to figure out at what time you give up your assets i.e. the skilled professionals and they are getting close to numbers that they really should nto go below to stay competitive, but then if the utilization rates are only 40%..that means you are paying salaries of 60% of the ppl who are not bringing in any money. With a traditional expectation of 70-80% chargeability overall, too many consultants are on the bench, and that is not a good situation to be in.
      The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

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        #4
        Darn these people!... No sooner had I posted on here then IBM announces 15K layoff!!! Intresting though since they acquire 30K plus more people from PWC in the same areas.

        What I have also heard is that the european consulting companies are doing better and also moving into the US market faster then the US consulting firms.


        Agree on public sector... I am thinking of higher ed more seriously these days... seems like it might be next big thing for consultants and its a bit more steady though obviously fewer perks.

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          #5
          european firms were not doing as well in the good days and now are not doing as bad in the slump or slowdown. the face very tough competition here and the chances of them challenging someone like IBM, Accenture, EDS or KPMG are a bit dodgy.

          IBM did lose 15k ppl, dont look at 30K the way you are looking at it, they did not hire 30K more ppl, they acquired a company of 30K. You will see the slash and burn in that business unit in a few months.

          If you are serious in pursuing public sector IT as a career, instead of education, you may want to look into government IT area..connectivity and security are going to be huge.
          The sheer impact of homeland security on System Integrators is expected to be massive.
          The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

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