IT Recession Towards a Consolidated Growth

Due to the economic recession and reduced IT funds, software development is going through a consolidation process. Due to the economic slowdown, many companies are re-looking their strategies to reduce the running expenditure for the capital already invested. Many Industries are now looking at a more affordable price quotes, by reducing the luxury. Thus, the small companies which compromised on luxury and increased their focus on quality are getting a big leap forward when compared to other big IT giants. Even large business owners are investing in small and medium business due to the several fear factors.

US government recently announcing the seed fund for start up companies is a strong signal to minimize the gap between the big giants and small start ups. This gives a boost to the US economy thus creating more job opportunities. Because the start-ups do not have excessive man power that is not required, it will in-turn increase the economy on a brighter side. Reducing the fund to the large IT majors and World Bank opting out on IT majors like Wipro and Satyam is a stepping stone for the success of small IT companies whose presence is directly in US.

Increasing the man power for the startups automatically makes the country richer and thus consolidates the loss that is going steeply towards the abyss.

Recently, few articles are writing about optimism that investors are putting forth and taking their wallets out to go for shopping the small and medium businesses to leverage their growth. This is also a healthy trend that is being observed due to the recession that created some work for the idle investors. A news article on financial times, US suggested that, A net 46 per cent of the 220 fund managers surveyed – who together oversee about $617bn – said they were overweight on emerging markets, up from 26 per cent last month and the highest reading since October 2007. Financial Times, May 20, 2009.

This fund into the emerging markets like India, will also strengthen the ties of the companies who are already into the deal of outsourcing or work sharing. The gateway into such markets has to be backed up by a logical breakdown in the micro marketing strategies. Companies or corporate who understand the micro marketing that is geared up with internet monitoring form a successful business model in this tough times of recession. The growth though is minimal during these tough times is projected as one of the biggest gainer in the account books, because there are companies whose account books are swaggering deep into the valley of recession. So small companies that make a small rise in its turnover consolidate the growth of the US economy.

The after effects of recession are very good, on the long run for the companies that survived.

Based on a small sampling survey done by GMR and its research department, these are some of the features that shown an increase during the recession times

• E-bay Auction for second sale goods
• Increase in the car boot sales
• Increase of fast food sales and catering services
• Increased usage of public transport
• Development of existing management team
• Migration of demanding customers
• Increase of online shopping

GMR has initially emerged as a small business unit which focused its services only to Website design, development and marketing, in these tough times where every business owner doesn’t want to leave any pebble unturned to tap the diminishing market the market cap for GMR has risen to 4 folds of its previous 1 year with online marketing. This profit leveraged GMR to consolidate its growth into software development and application maintenance areas that are web enabled which on a longer run prove profitable, thus now GMR has consolidated its growth during the tough recession times. In order to know more about our business model or how a small company survived in these tough times to become a major IT force, call us on 714-731-9000 or ask for a business plan that can enable your business to strategize its goals and initiatives.

GMR’s research and development team predicts that recession is going to end by Jun-2010; and it is predicted that there will be a sudden demand of goods and services in the market. All the hungry customers and banks all of a sudden start to shake hands with the survived companies and their willingness to spend increases. We also predict that 50% of these sales are going to happen online. So get your company survive in these tough times, by reducing your capital expenditure by 1/4th of its initial. Call us now on 714-731-9000 in order to find out different ways to protect your business from the tough times of recession and to know how to take advantage of the bear driven market indices.