The Australian IT Careers Institute and IT&T Education in Sydney and Melbourne will close their doors today in what some industry experts see as a worsening IT training environment.
"The outlook for IT training has continued to worsen," said Theo Baker, managing director of Powerlan. "Our continued focus is on improving the profitability of Powerlan, improving our quality of earnings, and restructuring those divisions which do not meet our strategic direction or return consistent profits."
The company said the closure is consistent with Powerlan's focus on its core business, the provision of proprietary software products and managed services. "Around June 30, 2001 we decided that if losses continued in that specific business until 31 December we would close it down. That specific business resulted in a $2 million loss," John George, chief financial officer, Powerlan said. "The general business community is not investing time, energy and resources as it did it in the past. It could be a long time before that improves again."
On how the closure of IT training bodies will impact the amount of IT professionals in a few years time, George foresees more rocky times ahead. "IT runs the risk of confronting a problem unless we invest more money into that space. But economics dictate that general business focus on its core strengths."
Powerlan's Brisbane-based IT training outfit, IT&T Education, remains profitable and will continue to operate.