Large Corporations Bypassing Traditional Software Vendors

Large financial companies aren't purchasing big software packages from traditional vendors. Small companies with turnkey applications are stepping into the gap.

FOR IMMEDIATE RELEASE:

Large Corporations Bypassing Traditional Software Vendors

Toronto, Ontario (PRWEB) October 16, 2003 - Since the collapse of the tech boom, most large companies, particularly in the banking and insurance industry, have not been purchasing enterprise software. As a result, many bigger software vendors are struggling. Part of the problem is that the failure rate during implementation of enterprise software – for example ERP or CRM packages – is unacceptably high, often reaching 40 percent. Companies are unwilling to invest millions of dollars in software that is intended to improve the efficiency of the company if there is an elevated possibility that the implementation will not succeed. These same companies, however, still require management-level reporting tools in order to enable their executives to make the appropriate decisions. Surprisingly, the gap has largely been filled by smaller, newer software vendors.

Says Erez Zevulonov, 30, the CEO of MIT Consulting, In the past few months, we have sold several reporting tools to insurance companies. These tools run on desktop PCs, and are usually implemented in under two months. The resulting return on investment is usually under six months."

What is the key to success?

From the beginning, we partnered with consulting companies that needed tools to implement the policy changes they were advocating. Typically the software is a small part in a larger strategy. This way, we bypass head to head competition with the big vendors."

Clearly, partnerships between different companies offering diverse services are a powerful strategy in selling large scale B2B applications. This approach can allow small software vendors success in a weak IT market.

For additional information, contact: Jeremy Lichtman

MIT Consulting is a small vendor of turnkey reporting applications for the financial sector. The company has successfully implemented reporting tools for several international insurance companies.

CONTACT INFORMATION
Jeremy Lichtman
MIT Consulting
416-250-1040 Phone
416-250-5827 Fax
1-866-667-1040 Toll Free
http://www.mitconsulting.ca

###