Oracle Mergers and Re-Positioning Creates Lay-offs & Redundancies

As a niche sector Recruitment Company that specialises in recruiting Oracle Professionals globally anything that happens with Oracle can dramatically affect the fortunes of our own company. When Oracle does well inadvertently we will do well and vice versa. So the news that Oracle may be planning another round of redundancies is not something we enjoy reading.

So apparently last weekend the guys at ZDNet got whiff that Oracle could be passing through another round of redundancies which could be amount to as much as 20% or 3000 staff from its consulting arm. There’s a wide array of speculation as to how many people will be or could be made redundant but the truth is nobody knows and when the guys at ZDNet tried to get some answers they got a nice “no comment” from the guys at Oracle.

What I would say is at Origin Forward we speak to Oracle Consultants around world all day every day because that’s what Oracle recruitment specialists do speak to Oracle Delivery Managers, Project Managers, Engagement Directors, Subject Matter Experts to Internal Recruiters etc. and a few of the Oracle guys we speak to have been letting off murmurings that Oracle as well as downsizing their consulting practice may be moving out of the Primary Systems Integration field all together and instead will now only work as a Secondary Contingency Integrator and parachute consultants in when the Primary Integrators cannot find the consultants in the said areas to implement.

This rumour and it is a rumour or speculation coincides with another point the guys at ZDNet mentioned which is about the pressure or the influence Wall Street has over Oracle. The repercussions of this is that Oracle are keeping a close eye on their P&L account and also a strategy which is primary concerned with maximising and maintaining margin. It’s not unusual to hear Oracle charging over £1,000 a day for some of their consultants and in todays market this probably is not sustainable especially as end-clients are getting clued up and the internet and changes in global communication makes finding alternative integrators that much easier.

Taking a snippet from Dennis Howlett from ZDNet, he says “…You can’t keep chasing margin at the expense of the two most important communities (customers and implementation consultants) and expect the business will go on producing stellar results forever and a day. It’s neither logical nor possible without something blowing up along the way.

While this layoff may be significant, it is too early to tell how customers will be impacted. My guess is there will be short term disruption that Oracle will paper over by parachuting Oracle Aces in where needed…”

Couldn’t have put it better and when you combine these issues with the fact that Oracle have recently had one of the most aggressive acquisition strategies ever seen in the IT market it is easy to see how there could be duplication of roles and skills throughout the organisation and redundancies and layoffs are a fact of life and were always going to happen.

It will be interesting to see what happens in the future and how the post recession Systems Integration delivery market will look. In the Oracle Retail market in particular there has already been some notable casualties and also a number of new delivery organisations arising from the ashes.

The bottom line is the market will look remarkably different post recession and if the market becomes more fragmented which it looks like it will do, the need for specialist recruitment intermediaries will be greater in the future.

David Howlett ZD Net Article: http://blogs.zdnet.com/Howlett/?p=1527

Other articles and blogs on the same subject:

http://www.reuters.com/article/technologyNews/idUSTRE5615EX20090702

http://layoffblog.com/2008/12/18/rumor-oracle-major-layoffs-are-to-come-in-january-2009/

http://fscavo.blogspot.com/search?q=oracle+layoffs

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Origin Forward Solutions is leading Oracle recruitment company. We resource Oracle ERP and Oracle Business Intelligence professionals for projects across the world. This blog is to give an insight into the recruitment world, the oracle market and any other factor that impacts the prior. Enjoy reading the blog and don't be shy to leave comments

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