Archive for the 'information' Category
December 31st, 2008 - where are we now? part-1
With the Banking industry having liquidity problems.. with respect to the Knowledge Industry, Banking & Financial Services companies got the first hit.
BFS as it is famously called in the IT Industry, is one of majority contributor for revenues. Banking industry had been the foremost in trying new technologies and making their systems up-to-date. The major reason for that one is, majority of Banks have their backend in Mainframe systems and either to e-enable those systems or replace them with new ones, they need the help of IT companies. The IT companies derive major chunk of their profit margins from the new Development projects. When the Banks are in cash crisis, the first thing they cut on is non-core development projects.
Ok, now which projects are non-core projects? New projects that are not critical for survival or compliance of the Banks.
Once the BFS industry got hit from the IT Industry perspective, next hit is the Manufacturing Industries.
Manufacturing with Logistics & SCM (Supply Chain Management) is the next other industry that had affected IT Industry. Major ERP providers cater to the Manufacturing domain and the IT companies rely on these companies for executing the projects.
Next in line is the related domains like Steel, Cement and other Metals.
The Manufacturing and Banking industry going down, the Automobile industry was also brought down. When the other industry got hit, the Automobile had problems sustaining the production. With the consumers not ready to buy, the inventory (cars & trucks) piled up with the dealers not able to sell. With the dealers not able to generate any money by selling the cars, the manufacturers had problems keeping the production UP. Two weeks back we had news about Chrysler & General Motors having problems to sustain and needed bail-out from the Government.
When the Auto Industry got down, lot of IT companies depended on the revenue from executing projects for these big Auto industry.
Other industries that got affected included Telecom & Media.
In the next post we will see which are the industries that survived with regards to the IT industry.