Kristin R. MoyerDavid Furlonger here. Maybe I am missing something (and I would love my colleagues and clients to comment), but multiple interactions with banks here in Asia suggests the vendor community may be rather ill prepared to deal with the current market crisis. Indeed, many are suggested to be taking a wait and see attitude with respect to market improvement.
I have even heard from one banker of some vendors strategizing on making price increases to cover potential margin contraction from the IT spending slowdown. This seems staggeringly short-sighted.
Virtually every banker I have spoken to has discussed the requirement to review their existing vendor relationship structure, the nature and extent of contracts, pricing, vendor consolidation, sustainability of vendor support, vendor viability, etc.
I find it hard to believe that any vendor segment will be immune from this focus or that any will be able to push price increases in this environment.
The criticality of vendors doing scenario planning is never more urgent. Taking a wait and see attitude is dangerous. Rather vendors should focus on improving efficiency in their business, developing partnership strategies, doing aggressive customer relationship management and making sure they execute flawlessly.
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Category: Uncategorized Tags: banking and investment services, financial crisis, IT, IT vendors, scenario planning
