The current economic climate has not been favorable to any industry. Software and IT is not an exception. However, what weve seen across several other industries, are significant declines of 40, 50 and greater percentages, the software and IT have not been hit quite as hard.
Our industry has shown some resilience based on a few simple reasons: remember that less than a decade ago we had our bubble burst and so really, any software company thats been around for more than 10 years has already dealt with its fair share of hardship. Another reason being in the course of the past 3- 4 years many software companies have seen a lot of success and thus have been able to stock pile cash, probably meant for other things i.e. acquisitions or expansion strategies but also to be used for a rainy day scenario, and we believe that the clouds are only just now starting to form. Understand that one of the key differentiators between a software company and a traditional business is the overhead and the fixed costs, so in an economic climate such as this software and IT have a distinct advantage. But dont get me wrong the Software/IT industry is hurting, like any other.