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Eric Berridge, co-founder of Bluewolf Inc

By Jennifer Bosavage, CRN
November 21, 2008    12:00 PM ET

What's the key to making money in an economic downturn or even recession? Sympathize with your customer, advises Eric Berridge, co-founder of Bluewolf Inc., New York. After all, there are plenty of companies that once had a IT budget of $2 million that's now been pared down to $500,000. "The vendor who is nimble and can come up with a solution at that level will be successful," he said, "but it's harder work for everyone."

Berridge himself is a pretty nimble player: When the dot-com bubble burst, he was one of a handful of brave entrepreneurs who forged ahead and opened an IT business. With Michael Kirven, he co-founded Bluewolf, one of the largest providers of professional services for on-demand software applications. Their company works with more than 1,000 customers to help them implement on-demand solutions.

Another key will be in focusing specifically on customers' needs, providing demonstrable return on investment in a relatively short. Berridge says this puts mega solution providers that specialize in offshore outsourcing at a disadvantage.

"Companies seem to be retreating from the offshore model. Firms like TSC have had an amazing run based on low cost resources," he says. "But as IT budgets dry up and a $20 million project becomes a series of projects totaling $200,000, offshoring is not as appealing. And, the jury is out on whether it is effective strategy."

In addition, Berridge, who recently published "Iterate or Die: Agile Consulting for 21st Century Business Success" says that in 2009, business customers will start to demand more user-friendly applications. That, he says, is the legacy of social networks such as Facebook and devices such as the iPhone.


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