NEWS: Tough times don’t last, tough people do

More profit declines. More layoffs.
Even Microsoft has announced that it would trim its workforce in the current economic downturn. Nevertheless, the ICT sector is likely to withstand the economic pressure better than many other sectors.
Even Microsoft has announced that it would trim its workforce in the current economic downturn. Nevertheless, the ICT sector is likely to withstand the economic pressure better than many other sectors.

The past few weeks certainly have not been encouraging for the ICT fraternity. The global recession has begun to put many players under tremendous pressure, including the so-called “founding fathers” of the ICT industry.

On the back of poorer-than-expected results, Microsoft announced that it would eliminate up to 5,000 jobs over an 18-month period. Intel also announced that it would cut up to 6,000 jobs, with factory closures in Malaysia, the Philippines and Oregon in the United States. Even IBM, where lifetime employment was seen as a given a decade ago, is planning to trim its workforce.

As more reports of poor financial performance come in, the list is expected to grow.

Layoffs and cost cutting are unfortunate, but companies understandably have to make tough decisions in a rough economy to preserve their financial position. It is hoped that serious efforts be made to ensure that the trimmings are minimal.

After all, with all the skills and experience, it will be a sheer waste to let talents become redundant. Retraining and redeployment are possible means to help soften the blow.

Proper handling of such issues as layoffs is important to instil confidence in the ICT industry. Over the years, the industry has prospered and created many job opportunities at various levels of the business. Yes, the global economy is under pressure now, and like everybody else, the industry is feeling the heat. The situation might look depressing, but by no means, hopeless. The industry had weathered a number of economic downturns before.

Although the current recession is admittedly one of the most difficult, it should be viewed as an acid test for ICT companies to emerge stronger when the dark economic clouds disappear.

According to observers, the ICT sector is in a good position to withstand the economic pressure better than many other sectors, given that ICT is deeply ingrained in the government and business work environments as well as in the consumer market. The economic downturn would see a drop in ICT spending, but not a stop.

What’s important for ICT companies now is to not lose focus on developing their business. There are still prospects out there. Those ready for battle and willing to hit the streets harder will prevail.