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Will the Crisis Revive the Market?  


17 October 2008

CRN/UE IÒ-BUSINESS • 16 OCTOBER 2008
Oleg Pozdnyakov, General Director of BrigRetail:
This crisis can be given a name of a “soap bubble” because it can not be defined as a structural crisis. In fact, a “soap bubble” has fallen to pieces. Therefore, the crisis will be transient but its consequences can be catastrophic for many companies of Ukraine and CIS countries. In respect to IT business development and demand for solutions during the crisis period there will be observed a lull in the market. Number of projects will be reduced to a minimum. Under difficult conditions, the key task for domestic enterprises will not be a question of business modernization but an issue of self-survival. Chain reaction applicable to crisis will have an impact on all industries to a lesser or smaller extent. IT labor market will also be influenced by crisis. This market is overheated by now and most likely will receive some reduction of salaries. A short time after the crisis termination there will be observed an industry reconstruction. Under such conditions, enterprises will face an exigency in search for both an effective management instrument and business process optimization. A new progressive management model as well as industry structural organization will be strongly required. Successful solution of these issues will serve as a guarantee of renewal of the lost competitive advantages in the postcrisis time. Hence, the crisis may give a start to implementation of business applications (ERP, Corebanking, CRM) and revival of IT market.



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