Seeing through the cracks in the Wall !!

By S.Suren

I thought I’ll post this article to keep you aware on whats happening with the global economy. Generally, though we are mostly preoccupied with whats happening in the ERP Arena, it’s also important that we know whats going on around us, since something of this nature could definitely have an impact into many other supporting industries.

The global economy has been experiencing a recession throughout 2008; right from the beginning we have seen major companies feel the pinch. In the last 6 months itself we have seen 3 of the top investment companies in the world disappearing. In March, Bear Sterns’s collapse shocked the markets, and now with what happened on “Bloody Sunday” – September 15th, we see that ML is being bought over by Bank of America for $50 B, Lehman Brothers filing for bankruptcy after 158 years of operations and AIG’s making preparation for its announcement after it experienced a 61% fall in shares, it sure does signal that the coming signs don’t look too good.

Generally there has been a notion that companies tend to implement new systems when there is a slowdown, if this is indeed the case, it probably because they have can spend more time and prepare themselves better during this lull period. Perhaps this does hold true, given the fact that some ERP Vendors are experiencing higher demand and increasing pay rates for their consultants, and this in turn is leading to better oppurtunities throughout the industry. All this will definitely get more interesting as time goes by, and perhaps this recession could be just short lived, however it’s believed that the last time something like this happened, the expert investor suggested that it was just a temporary phase, and they were wrong.

It’s important that we as ERP Consultant keep a close eye on these events since it could very well have an impact on everything we do as well, I shall keep posting more as and when things materialize.

Read more about the Economic Crisis on “Economic crisis of 2008”.

Hope you found this post informative and interesting.

All the very best…!!!