iCST Embraces Staffing Uptick
By Patty Enrado

SOUTH PORTLAND, Maine - With recent contract wins that have boosted sales growth 121 percent from January through August 2002 to the same period in 2003, iCST, provider of software, systems integration and IT staffing, said that it is witnessing economic recovery in the Northern New England region.

President Ashok Nalamalapu noted that companies are starting to focus on growing their businesses again in order to be competitive.

"The economy has reached its bottom. Companies are becoming more confident and investing in IT," said Nalamalapu.

He expects that by second quarter 2004 the economy will be in full swing.

Ted Eaton, director of business development, said that prospective customers are more responsive and willing to talk, whereas last year companies were not meeting with vendors.

While companies are still conservative, Nalamalapu said that companies still want ROI, albeit with a shorter return, and quality of service.

Companies also want a long-term relationship with their vendors, coupled with competitively priced quality service and products.

Nalamalapu noted that the first sign of recovery is the hiring of temporary people by businesses to do projects. Within a six-month period, companies then opt for long-term commitments in staffing.

The uptick in IT staffing has led to a 121 percent staffing growth over the same January through August time period, according to Nalamalapu.

The company now boasts a combination of 50 employees and consultants.

While the company set a goal of a 25 percent growth year to year at the onset of 2003, Nalamalapu said, "Our goal is not to be a big company, but to be a great company."

Nalamalapu said that when the climate became challenging for his company, a common vision was set forth. After cost-cutting measures, the company focused on serving better its current customer base and focusing on its core competencies.

Eaton noted that while it's a stretch to call the movement of new tech companies to the region massive, he has seen a number of companies relocate from large cities to the Portland, Nashua, and Portsmouth areas because of lower cost of living and operating expenses.

Regional wins, for software development, systems integration and IT staffing for 2003 include Portland-based UnumProvident, Bangor Savings Bank, South Portland-based Martin's Point Healthcare, South Portland-based Woodard & Curran, and Portland-based Barber Foods.

Contact: Ashok@i-cst.com (207)-772-6898