We see the information technology sector in the past 5 years as getting tight with the increasing competition. We are observing the retail sales become widespread while the projects amount were decreasing. The biggest bottleneck here is the unbalanced economy in the demand areas and lack of project development.
High spending enterprises for IT projects are retired into theirselves with economical crisis and they started to work on efficiency items. These performances include the implementation of urgent savings programs, postponing the investment projects and shift to alternative solution areas.
When we look at the local or foreign product and services companies, we started to observe the decreases in their revenues and in their profitability ratios. It is possible to see increases in the distributor firms where we can call as a junction point, but it is a fact that they are started to experience difficulties. Lack of cash, payment troubles and lack of projects are started to pressurize the IT sector.
In such a time period, system integration service providers and added value firms started to evaluate alternatives in order to stand, such as company acquisitions, mergers or leaving the market. Namely, the foreign investment companies are also started to examine their status seriously. Especially, expensive skilled manpower and lack of projects to compensate the costs of this manpower, force for layoffs, downsizing, selling th company or even leaving the market.
This complex environment where we are in, will cause the changes for the powerful companies. And also change the powerfull meaning. We will see easily these changes in top 500 company lists in 2010. New mergers and new models will be placed in this list.
It will be wrong, if we say the market and sector came to this situation because of the global crisis. Effects of local crisis in the past years, delays in the government investments, bad product and services selections and lack of skill buildings might be the main reasons of the existing situation.
In such a time period, system integration service providers and added value firms started to evaluate alternatives in order to stand, such as company acquisitions, mergers or leaving the market. Namely, the foreign investment companies are also started to examine their status seriously. Especially, expensive skilled manpower and lack of projects to compensate the costs of this manpower, force for layoffs, downsizing, selling th company or even leaving the market.
This complex environment where we are in, will cause the changes for the powerful companies. And also change the powerfull meaning. We will see easily these changes in top 500 company lists in 2010. New mergers and new models will be placed in this list.
It will be wrong, if we say the market and sector came to this situation because of the global crisis. Effects of local crisis in the past years, delays in the government investments, bad product and services selections and lack of skill buildings might be the main reasons of the existing situation.
On the other hand, many companies showed very good performances and healthy growths. We will start to see these companies by 2010, as new faces of the IT sector, that define the dynamics and make the new game rules. The benefit of this healthy growth both for users and suppliers, will provide them to stand together in the crisis and a long cooperation.
Mehmet Bilginsoy – April 09
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