IT Companies Need to Be Aggressive, Research Says

IT Companies Need to Be Aggressive, Research Says

According to consultancy company McKinsey, IT firms should transform their business strategies and assertively think of better ways to combat recession.  McKinsey suggests that IT companies implement “a hard-line management of working capital and investment in sales and marketing staff.”
 

Business organizations are advised to resettle supplier agreements and establish partnerships to lower down cost and uphold market status. McKinsey also recommends that businesses must cut back on sales, general, and administrative expenditures.

 

McKinsey’s research revealed that around 25 percent of IT companies may need to augment their credit lines and refund their debt next year. One of the very few things companies can do to bounce back from the upshots of financial downturn is to make acquisitions and create more valuable business propositions. 

 

McKinsey stated, “Buyers are counting on further declines in stock prices; sellers are unwilling, for the present, to deal in a fire sale, which is why Yahoo rebuffed a Microsoft offer that would now be worth a hefty premium.”

 

“Our findings do suggest that understanding the shape of past high-tech recessions and taking well-timed moves, should help companies withstand the more pernicious effects of downturns and capitalise on their very real opportunities,” McKinsey added.