The Net consulting shakeout continues

24 Jan 2001

TheStandard.com: MarchFirst Gives 550 Their Walking Papers

"Technology consulting firm marchFIRST (MRCH) said Tuesday afternoon that it would lay off 550 employees, cutting expenses and consolidating its smaller offices in Montreal and Pittsburgh as it continues battle for survival in a weak market."

It’s no wonder that large Web development firms are in trouble. For the most part, they all look the same and do pretty much the same kind of work. Now that the New Economy has slowed to a more realistic level, we no longer have the problem of demand for Web work outstripping supply. Interactive firms are now finding themselves fighting over slices of an increasingly small pie.

Since they are all more or less the same, no clear leader has emerged. And when there is no differentiation between large competitors in a shrinking market, some competetitors will die and others will consolidate.

What the landscape will look like in the future is a few large firms like Sapient and IBM that dominate the overall market surrounded by niche and regional firms that cater to customers whose needs cannot be met by the behemoths.

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