ALL EYES ON GOVT MASTER PLAN

As the rehabilitation process begins in the aftermath of the floods, IT companies and IT distribution companies said they expect the government to come up with a master plan to solve the problem in the future. 

 

Nakrop Niamnamtham, managing director of nForce Security Systems AP, said that the floods had a direct impact on the IT industry as Hard Disk Drive (HDD) and HDD components makers were hit hard. With the trend clear that there will be HDD supply shortages in the first half of 2012, the situation is bound to push up the price of hard drives.  

 

He said his company was also affected, but indirectly. Projects or deals in the pipeline and supposed to be closed in the fourth quarter of this year have been delayed or postponed as the main focus of everyone is to solve the flood crisis. The market is expected to remain dull until the end of the first quarter of 2012. The situation will return to normal within the second quarter of 2012 due to the urgent need for recovery in every market. This recovery will include investments in IT. The government sector will play a major role in stimulating the market by injecting cash into the system for recovery and repairs.      

“Since we are affected less than some of our customers who were victims of the floods, our focus is on how to help the customers, especially the ones who bought our products and services through our channels. Some of them have started recovering their IT systems, so we stand by with our engineers to support their needs. We will give priority to our customers,” said Nakrop.

Somchai Sittichaisrichart, managing director of SIS Distribution (Thailand), said the flood situation had affected its business in the fourth quarter of this year with revenue falling 30-50 per cent, especially from its retail shop which is located in northern Bangkok. However, the firm has come up with measures to help its partners recover from the situation.  

 

He added that the flood situation had a huge impact on HDD manufacturers, as a result there might be a shortage of HDD supply in the global market, with the price increasing by 10-15 per cent in the future. 

 

“I think that this year various IT firms such as HDD manufacturers and IT components manufacturers will maintain their businesses in Thailand but they would need to know the government’s master plan to solve a recurrence of such a problem in the future. A clear plan would create the confidence in them to continue their operations in the country and also set up businesses in the long term,” said Somchai. 

 

Adisak Sukumvitaya, CEO of Jaymart, said the company was affected by the flood situation, especially in the second week of November. However, the firm also has put in place measures and promotion campaigns to recover revenue in the fourth quarter, which would increase its annual revenue by 10-15 per cent. The company expects revenue for the year to reach about Bt5.6 billion, a 10-per-cent growth over 2010.